Berjaya Land selling stake in Vietnam resort operator

PETALING JAYA: Berjaya Land Bhd (BLand) is disposing of its 70% stake in Berjaya Long Beach Limited Liability Company (BLong Beach) to Sulyna Hospitality Hotel Restaurant Travel Service Co Ltd for VND333.25 billion (about RM65.32 million) cash.
In a filing with Bursa Malaysia yesterday, BLand said its wholly-owned subsidiary Berjaya Leisure (Cayman) Ltd (BLCayman) has entered into a capital contribution transfer agreement for the proposed disposal and to waive all amounts owing by BLong Beach to BLCayman.
The said debts outstanding (interco debts) as of Jan 31, 2017 are about VND87.5 billion (about RM17.15 million).
BLand said the proposed disposal provides an opportunity for the BLand Group to realise its investment in BLong Beach and the gross cash proceeds will be used for working capital of the BLand Group.
Incorporated in Vietnam in 2007, BLong Beach is principally involved in the operation and management of the Long Beach Resort Phu Quoc, an international four-star resort cum spa hotel in Phu Quoc Island.
The carrying value (inclusive of interco debts) in BLong Beach as of Jan 31, 2017 is about VND212.24 billion (about RM41.6 million).
The proposed disposal, which is expected to be completed by early 2018, will result in a gain of about RM17.2 million based on the unaudited carrying value as at Jan 31, 2017.