Mulpha selling four-star hotel in Australia for RM188mil

  • Business
  • Thursday, 18 Jul 2019

The chief executive of one victim, depositor Saigonbank Berjaya Securities JSC (SBBS) - a unit of Malaysia's Berjaya Corporation Bhd - told Reuters that if the ruling was upheld, she had little hope of recouping her bank's $10 million from the perpetrator, who was sentenced to life imprisonment. "We can't afford to lose the case. This represents 70 percent of our capital. Our business may get suspended," Josephine Yei said in an interview.

PETALING JAYA: Real estate investor and developer MULPHA INTERNATIONAL BHD is selling its four-star hotel in Australia for A$65mil (RM187.9mil).

Mulpha’s Australian units have entered into a property and business asset sale agreement with JY Cairns Esplanade Hotel Pty Ltd for the disposal of Rydges Esplanade Resort located in Cairns, Australia.

“The proposed disposal will enable Mulpha to unlock the value of the property and generate cash for the group,” it said in a filing with Bursa Malaysia.

“The proceeds from the proposed disposal are intended to be utilised for the repayment of bank borrowings, incidental expenses relating to the proposed disposal, performance guarantees, capital expenditure reimbursement as well as working capital requirements.”

The disposal is expected to be completed by the fourth quarter of this year.

The group acquired the 242-room hotel for A$42.3mil on Dec 20, 2016. The sale is expected to result in a net gain after tax of A$14.9mil (RM43.1mil).

The disposal is expected to have a positive effect of 14 sen on Mulpha’s earnings per share and net assets per share, which in turn reduces its gearing ratio by 2%, from 42% to 40%, when applied to the balances as at Dec 31, 2018.

Mulpha closed 1.38% lower at RM2.14, traded on a volume of 151,600 shares.

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