Hap Seng sells Tawau land for RM90.13m

PETALING JAYA: Hap Seng Consolidated Bhd is disposing of two parcels of land measuring 59.24 acres in Tawau, Sabah for RM90.13 million through a related party transaction.
Hap Seng said its wholly owned subsidiary Hap Seng Properties Development Sdn Bhd entered into a sale and purchase agreement with Goldcoin Ventures Sdn Bhd for the disposal.
It said the deal is line with the group’s strategy to divest land in non-strategic locations without immediate development potential.
As at end-December 2017, the net book value of the land stood at RM10.08 million, including deferred development expenditure.
The expected net gain is RM60.84 million, which will give rise to the group’s earnings per share by about 2.44 sen.
Hap Seng said the disposal proceeds will be used to reduce bank borrowings and/or to contribute to its working capital.
Its share price was down one sen or 0.1% to settle at RM9.76 today on 623,300 shares done.