PETALING JAYA: Yong Tai Bhd
(YTB) is proposing to dispose of a five-star hotel known as “Courtyard by Marriott Melaka” in Melaka to Southern Envoy Sdn Bhd for RM160mil.
In a filing with Bursa Malaysia, YTB said the proposed disposal will allow the group to repay existing bank borrowings and payment of outstanding progress claims to the hotel contractor, thus improving its gearing level.
“Upon completion of the proposed disposal, YTB Group is able to improve its financial performance and realise a gain and thereby strengthen its cash flow and net assets position.”
Additionally, YTB said it is also proposing a special issue that will entail the issuance of up to 190.05 million new YTB shares, to help raise funds for the repayment of existing loan and borrowings; to part finance existing projects; acquire of new land banks and / or property development projects; as well as working capital requirements.
