KUALA LUMPUR: YLI Holdings Bhd's subsidiary, Laksana Wibawa Sdn Bhd (LWSB), has received RM97.84 million compensation from the Department of Director General of Land and Mines for the compulsory disposal of its 4.49 hectares land in Hulu Serendah, Selangor to make way for the East Coast Rail Link (ECRL) project.
The group will use about 61 per cent of the amount received to repay borrowings and redeem redeemable convertible preference shares.
YLI Holdings will book a gain of RM62.17 million from the disposal.
In its filing with Bursa Malaysia today, YLI Holdings said the acquirer is Malaysia Rail Link Sdn. Bhd (MRLSB), a wholly-owned subsidiary of Minister of Finance Incorporated (MOF Inc.), which has been appointed as the asset and project owner of ECRL.
"The compulsory disposal arose as a result of the receipt from the land administrator of the notice to take possession of the land under Section 18 of the land acquisition act 1960.
The leasehold land was acquired by LWSB in year 1999. The lease was to expire on September 10, 2096.
YLI Holdings said the board of directors, having considered all financial and other factors, and is of the opinion that the compulsory disposal is fair and reasonable. "
The monies were received on October 3, 2023.