Property developer, LBS Bina Group Berhad (LBS 5789) has officially completed the sale of its China assets valued at HKD$1.65 billion. The Group successfully fulfilled all terms and conditions of the Sale and Purchase Agreement (SPA) signed with Zhuhai Holdings Investment Group Limited, a public company listed on the Hong Kong Stock Exchange (Zhuhai Holdings 0908HK).
Signed on April 10, 2013, the SPA listed the Group’s wholly-owned indirect subsidiary, Dragon Hill Corporation Limited’s disposal of the entire issued and fully paid-up share capital of its two subsidiaries, Lamdeal Golf & Country Club Limited and Lamdeal Consolidated Development Limited. The subsidiaries are engaged in golf club operations and proposed property development projects respectively.
“I am pleased to announce that the disposal of two of our China assets has been successfully concluded. The disposal enables us to retain a healthy balance sheet which the pro forma shows an improvement on Earnings Per Share (EPS), Net Asset (NA) value, NA per share and Gearing Ratio based on the latest audited consolidated financial statements of LBS Group as at 31 December 2012.” said LBS Managing Director, Dato’ Lim Hock San.
LBS obtained the approval of its shareholders for the proposed disposal of its China assets at the Extraordinary General Meeting held recently. In accordance to the mode of settlement stated in the SPA, LBS has received HKD 500 million cash, 225,563,909 new Zhuhai Holdings listed shares issued at HKD1.33 per share, worth HKD 300 million and Promissory Notes for the sum of HKD 850 million. As a substantial shareholder of Zhuhai Holdings, the Group also appointed Dato’ Joey Lim Hock Guan as a non-executive director on the Zhuhai Holdings Board.