LBS Bina gets RM108m from sale of China property

KUALA LUMPUR: LBS Bina Bhd has received the second tranche of HK$200mil (RM108mil) from the sale of its assets in China to Zhuhai Holdings Investment Group Ltd.

It said on Tuesday the payment was early by four months from the due date and it would enable the group to reduce its cost of borrowings and enhance the thus cash flow and earnings for the financial year ending Dec 31, 2015.

Of the RM108mil, LBS said RM37.80mil would be used to reduce it bank borrowing while RM16.20mil would be used for payment of trade payables and RM10.80 would be foroperating expenses. It also said the remaining RM43.20mil would be given out as special dividend.

To recap, LBS Bina’s unit had in April 2013 signed a deal to sell Lamdeal Consolidated Development Ltd and Lamdeal Golf & Country Club Ltd for HK$1.65bil to Zhuhai Holdings’ unit Jiuzhou Tourism Property Company Ltd.

The disposal consideration of HK$1.65bil was in the form of cash HK$500mil cash, 225.5 million new shares of Zhuhai Holdings which is listed on the Hong Kong Stock Exchange and deferred cash payment of HK$850mil to be paid in four tranches from 2014 to 2017.