PETALING JAYA: Loss-making Landmarks Bhd has proposed to sell a controlling stake of 51% in its hotel operation in Bintan, Indonesia for RM42.24mil to raise funds to supplement its working capital requirements.
Genting Bhd owns a 25% stake in Landmarks.
In a filing with Bursa Malaysia yesterday, Landmarks said the group is expected to record a one-off gain on disposal of S$20.27mil, which is equivalent to RM61.72mil derived from the disposal of 51% equity interest in its subsidiary Mendol Investments Pte Ltd (MIPL) and the fair value of the remaining 49% stake in the latter.
“The cost of investment of Landmarks in MIPL was S$6.66mil (RM20.28mil), ” it said.
Upon completion of the disposal, Landmarks would retain a 49% interest in the MIPL.“Landmarks group would continue to derive future earnings of MIPL via contribution from investment in associates, ” it said.
MIPL is a subsidiary of Landmarks that own the Natra Bintan Hotel, which is part of the group flagship Treasure Bay Bintan, a 338-ha waterfront resort city. The proposed disposal is expected to result in an increase in net asset per share of the group from RM3.38 to RM3.50 and also improve the gearing ratio of the group from 0.05 times to 0.02 times.