Developer says disposal to result in estimated loss of RM25mil
PETALING JAYA: BERJAYA LAND BHD (BLand) is selling its entire stake in Vietnam-based Berjaya Vietnam Financial Centre Ltd (BVFC Ltd) for RM154.86mil to the country’s biggest property developer.
BLand, in a filing with Bursa Malaysia, said the disposal would result in an estimated loss of about RM25.1mil.
The company said its wholly-owned subsidiary, Berjaya Leisure (Cayman) Ltd (BLeisure Cayman), had entered into a capital transfer agreement for the proposed disposal of its entire resultant 32.5% of the capital contribution in BVFC Ltd to Vinhomes Joint Stock Co and Can Gio Tourist City Corp.
Can Gio is a subsidiary of Vinhomes.
“The proposed disposal represents an opportunity for the BLand group to divest its investment in BVFC Ltd,” said the company, adding that the disposal was not subject to the approval of its shareholders.
“However, the proposed disposal is subject to the approvals from the department of planning and investment in Ho Chi Minh and any other relevant authorities. The proposed disposal is not conditional upon other corporate exercises of BLand.”
BVFC Ltd is involved in the development of the BVFC development in Ho Chi Minh City. The project is planned as an integrated mixed commercial development, offering retail and food and beverage outlets within an eight-storey shopping mall.
The development also comprises two signature office towers, a five-star hotel and serviced residences tower, as well as a serviced suites tower. The development covers a net development land area of 16.39 acres.
“BVFC Ltd has not commenced operations,” said BLand.
Separately, BLand said Vinhomes and its affiliates are also being considered as potential purchasers of Berjaya Vietnam International University Town One Member Ltd Liability Co (BVIUT).
The company said Vinhomes had, in December, injected a cash sum of 11,904 billion dong (RM2.08mil) as fresh capital contribution into BVIUT in order to meet certain similar conditions imposed by the Vietnamese authorities, which require BVIUT to increase its charter capital to RM210mil.
“Accordingly, BLeisure Cayman’s initial stake in BVIUT has also been diluted from 100% to 0.8%. It is the intention of BLeisure Cayman to dispose its 0.8% stake in BVUIT in the near future.”
Together with the proposed BVIUT disposal, BLand said the group is also in negotiations on the potential sale of another Vietnamese subsidiary. It said appropriate announcements would be made upon the execution of the respective agreements pertaining to the proposed BVIUT disposal and proposed Vietnamese subsidiary disposal.
“Barring any unforeseen circumstances, the proposed disposals of all three Vietnamese subsidiaries upon completion are expected to record significant gains and improve the consolidated net assets of BLand.”
The Berjaya group is one of the biggest and earliest Malaysian corporate investors in Vietnam, having started its investments there in 2005. Its operations go beyond real estate with investments in hotels and stock broking.
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