Landmarks sells stake in MSL Properties for RM87.4mil

MSL Properties owns Wangsa Walk Mall in Wangsa Maju, Kuala Lumpur, and 24.5ha of leasehold land in the Wangsa Maju area.

KUALA LUMPUR: Landmarks Bhd’s indirect unit Kuala Lumpur Suburban Centre Sdn Bhd is divesting its 20% stake in Bandar Baru Wangsa Maju developer MSL Properties Sdn Bhd for RM87.38mil cash.

MSL owns Wangsa Walk Mall in Kuala Lumpur  and 24.5ha of leasehold land in the Wangsa Maju area.

Landmarks, which focuses on the resort, hospitality and wellness businesses, told Bursa Malaysia that the group and twos other MSL shareholders, Handal Dinamis Holdings Bhd and Permodalan Peremba Sdn Bhd, signed a share sale agreement on Friday to sell their ordinary and preference shares to MCL.

MCL is an indirect subsidiary of London-listed Hongkong Land Holdings Ltd. Already owning 50% equity interest in MSL, it will end up with a 100% stake after the acquisition is completed, expected to be in three months.

MSL made an audited net profit of RM46.7mil for the financial year ended Dec 31, 2016.

While MSL had  been profitable, Landmarks said its 20% equity interest in MSL was not strategic and did not accord any management control. 

“MCL has offered to purchase KLSC’s equity interest in MSL based on the RNAV (revised net asset value) of MSL as at Dec 31, 2016, of RM436.9mil,” it said.

Landmarks. whose group after-tax loss grew 132% to RM27.9mil in the financial year ended Dec 31, 2016, said proceeds from the proposed disposal would allow it to finance the capital expenditure for its flagship project - the 338ha Treasure Bay Bintan on Bintan Island, Indonesia - and to use as working capital.