Amprop to realise RM149.1m gain from Kesas sale

by **Cals** Wed 26 Feb 2014, 17:36

Business & Markets 2014

Written by Shalini Kumar of theedgemalaysia.com

Wednesday, 26 February 2014 09:55

KUALA LUMPUR: Amcorp Properties Bhd (Amprop) will realise a gain of RM149.1 million from the proposed disposal of its 20% stake in Kesas Holdings Bhd to Gamuda Bhd for RM280 million cash.

In a Bursa Malaysia filing yesterday, Amprop said the disposal represented an opportunity to realise its investments in Kesas for a fair price.

“The proposed disposal is also in line with the group’s objective to dispose of non-core assets. Subsequent to the disposal, Amprop can then devote more of its resources to its core businesses, particularly the property division and renewable energy projects,” it said.

Amprop’s original cost of investment was RM94.18 million, which has been incurred since Oct 1993.

Amprop said that for the financial year ended March 31, 2013 Kesas was a major financial contributor to the group’s net profit, accounting for some RM32.7 million or 33.9%.

For the third quarter ended Dec 31, 2013, Amprop posted a net profit of RM22.48 million, on the back of RM59.61 million. Cumulatively, for the nine months, Amprop recorded a net profit of RM36.49 million and revenue of RM116.13 million.

According to the filing, RM104.6 million of the proceeds will go towards committed capital investments, RM80 million would be for future capital investments and the rest would go towards repayment of bank borrowings, working capital and the expenses related to the disposal.

The disposal is expected to be completed in the first half of the year.

To recap, Amprop received an offer letter on Nov 4 from Gamuda to buy out its stake for RM250 million. Gamuda also extended the takeover offer to Kesas’ other shareholders, namely the Selangor State Development Corp (PKNS) and Permodalan Nasional Bhd (PNB), who held a 30% and 20% interest respectively.

On Dec 23, Gamuda revised its offer to Amprop to a total of RM280 million.

This article first appeared in The Edge Financial Daily, on February 26, 2014.