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ILB to pay out special dividend for China asset disposals
by Cals Fri 06 Sep 2013, 10:48
ILB to pay out special dividend for China asset disposals
Business & Markets 2013
Written by Zatil Husna Wan Fauzi of theedgemalaysia.com
Friday, 06 September 2013 09:51
KUALA LUMPUR: INTEGRATED LOGISTICS BHD [] (ILB), which in June announced the disposal of its two Chinese units for 998 million yuan (RM533.93 million) cash, proposes to reward its shareholders with a special dividend amounting to RM181.2 million.
Based on a share capital of 164.7 million, the proposed special dividend will translate into a net payment of RM1.10 per share, according to the circular to shareholders.
ILB said the RM181.2 million constitutes 52.2% of the total net cash proceeds of RM347.24 million that it expects to receive from the disposals.
The remaining net proceeds of RM166.04 million will be utilised for strategic acquisitions within the industry in which it operates.
To recap, ILB’s indirect 70% owned unit Integrated Logistics (HK) Ltd proposed the disposals of ISH Logistics (Shenzhen II) Ltd (IL Shenzhen) and Integrated Logistics Henan (HK) Ltd (IL Henan).
ILB is selling the two companies, which are involved in the provision of warehousing and transport services, to Winfair International Holdings Ltd.
Under the deal, Winfair will provide interest-free loans to IL Shenzen and IL Henan to fully repay their bank loans. Winfair will also provide interest-free loans to relevant member-companies of IL Shenzen and IL Henan to fully repay the outstanding inter-company payables.
Winfair may also be required to deposit the full amount of the final adjustment sum into a bank account in Hong Kong. The disposals of IL Shenzhen and IL Henan are expected to be completed at the end of next month.
ILB expects to reap an estimated gain on disposal of approximately RM188 million.
“The proposed disposals will enable the group to substantially reduce its borrowings and lower its gearing position as well as release cash that can be re-deployed more efficiently towards the businesses of the ILB group.”
As at Dec 31, 2012, ILB had borrowings of RM56.41 million and a gearing ratio of 0.13 times. Upon completion of the deal, the group’s borrowings are expected to be reduced to RM9.71 million, with its gearing lowered to 0.01 times.
This article first appeared in The Edge Financial Daily, on September 06, 2013.
Business & Markets 2013
Written by Zatil Husna Wan Fauzi of theedgemalaysia.com
Friday, 06 September 2013 09:51
KUALA LUMPUR: INTEGRATED LOGISTICS BHD [] (ILB), which in June announced the disposal of its two Chinese units for 998 million yuan (RM533.93 million) cash, proposes to reward its shareholders with a special dividend amounting to RM181.2 million.
Based on a share capital of 164.7 million, the proposed special dividend will translate into a net payment of RM1.10 per share, according to the circular to shareholders.
ILB said the RM181.2 million constitutes 52.2% of the total net cash proceeds of RM347.24 million that it expects to receive from the disposals.
The remaining net proceeds of RM166.04 million will be utilised for strategic acquisitions within the industry in which it operates.
To recap, ILB’s indirect 70% owned unit Integrated Logistics (HK) Ltd proposed the disposals of ISH Logistics (Shenzhen II) Ltd (IL Shenzhen) and Integrated Logistics Henan (HK) Ltd (IL Henan).
ILB is selling the two companies, which are involved in the provision of warehousing and transport services, to Winfair International Holdings Ltd.
Under the deal, Winfair will provide interest-free loans to IL Shenzen and IL Henan to fully repay their bank loans. Winfair will also provide interest-free loans to relevant member-companies of IL Shenzen and IL Henan to fully repay the outstanding inter-company payables.
Winfair may also be required to deposit the full amount of the final adjustment sum into a bank account in Hong Kong. The disposals of IL Shenzhen and IL Henan are expected to be completed at the end of next month.
ILB expects to reap an estimated gain on disposal of approximately RM188 million.
“The proposed disposals will enable the group to substantially reduce its borrowings and lower its gearing position as well as release cash that can be re-deployed more efficiently towards the businesses of the ILB group.”
As at Dec 31, 2012, ILB had borrowings of RM56.41 million and a gearing ratio of 0.13 times. Upon completion of the deal, the group’s borrowings are expected to be reduced to RM9.71 million, with its gearing lowered to 0.01 times.
This article first appeared in The Edge Financial Daily, on September 06, 2013.
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