KUALA LUMPUR: Naim Holdings Bhd's unit Petrochemical Hub Sdn Bhd is selling two parcels of vacant land in Bintulu, Sarawak to Sarawak Economic Development Corp for RM340 million.
In an exchange filing, Naim said it had today entered into a sale and purchase agreement (SPA) with the Sarawak state-owned statutory body for the disposal of 405.6 hectares.
The land comprises two adjoining parcels sandwiched between Bintulu Onshore Receiving Facility (owned by PTT Exploration and Production Public Co Ltd) off South China Sea, along the road leading to Kem PLKN Similajau and Petronas gas pipeline.
Naim said the proposed disposal represented a discount of RM60 million or about 15 per cent over the market value of RM400 million, dated November 19, 2018.
"Assuming the proposed disposal had been executed and completed as at December 31, 2019, it is expected to generate a proforma gain of about RM115.81 million."
Naim said the disposal could also provide working capital for the existing and future operations of the group, particularly in its plan to develop some 2,500 affordable and intelligent homes in the next five years as part of its new 25 years' big dream of providing one million houses to communities.
"Part of the proceeds from the disposal will enable the us to make a dividend payment as a reward to the shareholders," said Naim.
Naim said the net proceeds from the disposal was also expected to be utilised by the group's subsidiaries to repay bank borrowings.
"The net proceeds are expected to be fully utilised within eighteen months from the completion of the disposal," it added.