Hot Stock LBS Bina gains 1.56% on special dividend plan

Hot Stock
LBS Bina gains 1.56% on special dividend plan

KUALA LUMPUR (Sept 2): Shares of LBS Bina Group Bhd rose 1.56% in early trade today after the company said it had earmarked 40% from a HK$200 million (RM108 million) part payment as special dividend.
At 9.19am, LBS rose 2 sen to RM1.30 with 78,200 shares done.
In a filing with Bursa Malaysia yesterday, LBS said the HK$80 million would finance the special dividend within five months.
The HK$200 million part payment forms a portion of the HK$1.65 billion LBS stands to receive from the sale of its 100% stakes in Lamdeal Consolidated Development Ltd and Lamdeal Golf & Country Club Ltd to Zhuhai Holdings Investment Group Ltd.
“The board is pleased to announce that the company has today received the second tranche of deferred cash payment of HK$200 million, early by four months from the due date,” it said.
“The board applauded the early payment as it enables the group to reduce its cost of borrowings thus contributing positively to the cash flow and earnings of the group for the financial year ending Dec 31, 2015,” LBS said.
Besides the special dividend, LBS said it will use the HK$200 million to reduce bank borrowings and finance operating expenses.
LBS said it had set aside HK$70 million and HK$20 million to cut debt and finance operating expenses respectively. It plans to use the allocations within one year.