KUALA LUMPUR: YNH Property Bhd yesterday said it will use RM110.9 million of the proceeds from the sale of seven-storey 163 Retail Park for RM215 million, for redemption of a property charged to Public Bank Bhd.
It will use the other RM74.1 million for working capital and RM30 million for repayment of borrowings.
YNH was one of the most actively traded stocks yesterday, closing at 84.5 sen a share, with a market capitalisation of RM447 million.
In a filing with Bursa Malaysia Secruties Bhd, YNH said its subsidiary D'Kiara Place Sdn Bhd, signed a sale and purchase agreement on Jan 26 with Sunway REIT truste RHB Trustees Bhd for the sale of the shopping centre to Sunway Real Estate Investment Trust.
YNH said the proposed disposal represents an opportunity for the group to unlock the value of and monetise its investments in the 163 Retail Park.
"The group is expected to record a pro forma net loss of approximately RM12.04 million after accounting for the reversal of deferred tax, which is no longer required as there is no capital gain tax applicable for disposal of property, from the proposed disposal," it said in its filing with Bursa Securities.
On Jan 18, MARC Ratings Bhd lowered its rating on YNH Property Bhd's sukuk wakalah to BBB+IS and placed it under MARCWatch Negative on heightened liquidity concerns with the delay in sale of assets such as 163 Retail Park.