PETALING JAYA: Shareholders of YNH Property Bhd
have greenlighted the disposal of Kiara 163 Retail Park and AEON Seri Manjung for a total of RM422.5mil in cash to ALX Asset Bhd at an EGM held yesterday.
YNH’s independent non-executive director Ching Nye Mi said the disposal will generate an infusion of RM422.5mil into the YNH group.
This will strengthen its balance sheet while allowing the group to gain more headroom to secure the future funding required to finance other exciting projects, as well as kick-start its flagship project, Menara YNH.
Ching said YNH remains optimistic on the Malaysian property sector outlook and expects to continue to receive rental income of approximately RM6.4mil per year from its current properties located in Perak.
“Our ongoing property development projects, including Solasta Dutamas and a future property development project located in Genting Highlands, are also expected to contribute positively to our group’s financial performance in the foreseeable future,” he said in a statement.
According to the circular to shareholders dated Feb 10, 2023, the YNH group is expected to record a pro forma net gain of about RM61mil from the proposed disposal exercise, which is expected to improve its net assets and earnings.
Proceeds of the disposal will be utilised for repayment of bank borrowings and working capital requirements of the group as well as to pay for the said proposed disposal exercise.
YNH had earlier disclosed that the total RM422.5mil consists of the disposal of Kiara 163 Retail Park for RM270.50mil and AEON Seri Manjung for RM152mil.
The two assets will be satisfied by ALX Asset Bhd entirely in cash, through the issuance of medium-term notes (MTNs) under a proposed asset-backed MTN programme of up to RM500mil in nominal value.
YNH had also disclosed in its circular to shareholders that the proposed disposal was a related-party transaction and as such, Datuk Dr Yu Kuan Chon as well as YNH managing director, Datuk Yu Kuan Huat, had abstained from all board deliberations, meetings and on voting on the resolutions pertaining to the proposed disposal at the recently concluded EGM.
