Enra sells assets for RM85 mil to Hiap Teck’s largest shareholder

KUALA LUMPUR (May 15): Enra Group Bhd is selling its properties in Holiday Plaza, Johor, together with some office units in Taman Shamelin Perkasa here, for RM85.15 million in all, to its former largest shareholder, Tan Sri David Law Tien Seng.

Enra said in a Bursa Malaysia filing its board was of the opinion the historical net rental income and rental yields of the properties were low.

Hence, the proposed disposal would provide the group an avenue to realise "substantial cash proceeds which can be utilised to invest in higher yielding businesses or assets to be identified", said Enra.

Law’s TS Law Group Sdn Bhd was formerly the largest shareholder of Enra back when it was known as Perduren (M) Bhd. Currently, Law is the largest shareholder of Hiap Teck Venture Bhd with a 26.9% stake. Enra inked separate deals with Law’s vehicles today for the proposed disposals.

The assets it is selling in Holiday Plaza are 40 retail units, 16 office units (for RM51.85 million), and the basement car park (for RM28 million). At the same time, it is selling three subsidiaries for RM133,921 to Law. Each of the subsidiaries own a retail unit in Holiday Plaza.

It is also selling six office units in Taman Shamelin Perkasa here, for RM5.16 million.

The company intends to use RM36.96 million of the sale proceeds to repay bank borrowings, and another RM38.69 million to invest in or develop a viable business or assets to be identified. The remainder is to be used for working capital and estimated expenses for the proposed disposal.

Enra said the proposed disposal should be completed in the fourth quarter of this year.

Enra shares did not trade today. It last traded at RM2.81 on May 11, which gave it a market capitalisation of RM379 million.

 — theedgemarkets.com

For more stories, download TheEdgeProperty.com pullout here for free.