KUALA LUMPUR: Puncak Niaga Holdings Bhd's unit plans to sell its 100 per cent interest in Zuriat Watan Sdn Bhd (ZWSB) for RM83.6 million.
TRIplc Bhd entered into two separate agreements with Jinze Sdn Bhd, and Leeway Holdings Sdn Bhd, DB Enneadrakon Group (M) Sdn Bhd and Sheng Dar Holding Sdn Bhd respectively.
Puncak Niaga said the first proposal is expected to be completed by the third quarter of 2024 (3Q24), while the second proposal in 4Q24.
The proposed disposals will result in a proforma loss of about RM82.84 million to the Puncak Group.
The company said the proposed disposals are part of its strategy to monetise its non-core assets, to ease the cash flow of the group.
It said the funds will be used for financial obligations, general working capital and for expenses related to the disposals.
The disposal price was arrived at on a "willing buyer willing seller" basis after taking into consideration the severance damages due to the alignment of the East Coast Rail Link (ECRL) which cuts through the southern part of the 882 subdivided leasehold building lots approved for residential and commercial development
They also considered costs to reassess and redesign the approved development plan on the unaffected portion of the subdivided lots.
24 lots of ZWSB's land were acquired by the Malaysian government for the ECRL project, where out of the 24 lots, three lots were partially acquired.
As at the date of this announcement, ZWSB had received a sum of RM24.3 million from Malaysia Rail Link for the 23 lots of leasehold land and it withheld the remaining RM8.1 million due to the objection and disagreement of the compensation sum awarded by the authority for the compulsory acquisition.
The remaining one lot is pending a hearing date to be fixed by the authority to decide on the amount of compensation.