KUCHING: Property developer LBS Bina Group Bed (LBS) yesterday received the approval from shareholders pertaining to the proposed disposal of its entire interest in Lakewood Golf Club and Zhuhai Development Land for a total consideration of HK$1.65 billion.
The purchaser, Zhuhai Holdings Investment Group Limited (Zhuhai Holdings), has announced that its shareholders have also approved the resolution pertaining to its proposed acquisition at the special general meeting held recently.
With the approvals from the relevant authorities and shareholders at the EGM, both LBS and Zhuhai Holdings are set to complete the Sale and Purchase Agreement (SPA) soon.
Under the proposed mode of settlement in the SPA, LBS will be receiving cash of HK$ 500 million, 225,563,909 new Zhuhai Holdings listed shares issued at HK$1.33 per share, worth HK$ 300 million and Promissory Notes for the sum of HK$850 million.
In line with the terms of the agreement, LBS who will then be a substantial shareholder of Zhuhai Holdings and will be entitled to appoint a non-executive director on Zhuhai Holdings Board. Upon completion, LBS is set to reap a hefty pro forma gain of RM309 million for the financial year ending 2013.
LBS managing director, Datuk Lim Hock San said, “Once we become a substantial shareholder in Zhuhai Holdings, LBS will indirectly benefit from the Zhuhai Development Project through potential appreciation of Zhuhai Holdings’ share value and any future dividend payments. With all these, I am very confident that it will enable our Group to retain a healthy balance sheet and thus maintain its strong financial track record.”
The timely proposed disposal will unlock the value of LBS’ investment in China. The pro forma effects on EPS, NA value, NA per share and Gearing Ratio, based on the latest audited consolidated financial statements of LBS Group as at December 31, 2012.