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BAT Malaysia gets shareholders' nod to sell its land to LGB Properties

KUALA LUMPUR: British American Tobacco (Malaysia) Bhd received its shareholders' approval to dispose its land to LGB Properties (M) Sdn Bhd for RM218 million.

Shareholders at the company's EGM told media that the board received 99.99 per cent approval from shareholders, with the holdouts numbering in the region of 3,000.

Company officials secretly exited the EGM to avoid the media. However, a representative from the advertising and marketing agency representing the company confirmed that shareholders approved the sale.

In its earlier Bursa Malaysia listings in previous weeks, BAT Malaysia indicated that the sale should be concluded by year end.

A shareholder, who declined to be named, said that following the sale of the land in Petaling Jaya, BAT Malaysia has an understanding with the purchaser of the land to rent the premises for a year.

He said the company did not reveal where it will move its operations to after that one-year post-sale period ends.

In a statement released at the EGM, BAT Malaysia said that the winding down of its operations was because of "the increasingly challenging environment" which led to the board putting the property up for sale via a public tender exercise.

In a circular to its shareholders, meanwhile, BAT Malaysia said that it will maintain its listing status notwithstanding these changes to its operations.

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