BAT to sell PJ properties to LGB for RM218mil

BAT premises in Petaling Jaya

Part of one of the lots is leased to Tenaga Nasional Bhd for a 30-year period expiring in July 2032. Another condition of the sale and purchase agreement (SPA) is that LGB will grant a tenancy of the properties to BAT’s unit Tobacco Importers and Manufacturers Sdn Bhd for 12 months at a monthly rental of RM1.09mil, with an option to extend for two further terms of six months each, from the completion of the SPA.

BAT’s earnings per share will increase by about 52.1 sen from the sale, based on the weighted average number of shares in issue as at Dec 31, 2015.

The purchaser of BAT’s properties is a unit of LGB Realty Sdn Bhd, which is believed to be part of the LGB group. LGB Holdings Sdn Bhd holds a 49.89% indirect stake in Taliworks Corp Bhd and 25.16% in Amalgamated Industrial Steel Bhd.

BAT shares closed RM1.60 lower at RM50.20 on Wednesday.