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KUALA LUMPUR (Feb 16): Berjaya Land Bhd (BLand) is selling its entire 70% stake in four-star Long Beach Resort Phu Quoc in Vietnam to Sulyna Hospitality Hotel Restaurant Travel Service Co Ltd for 333.25 billion dong (RM65.32 million) cash.
BLand said the proposed disposal provides an opportunity for the group to realise its investment in Berjaya Long Beach Ltd Liability Co (BLong Beach), which operates the resort cum spa hotel. This will result in an RM17.2 million gain on sale based on the unaudited carrying value as at Jan 31, 2017.
BLand plans to use the proceeds for working capital of the group. The proposed disposal is expected to be completed by early 2018.
In a filing with Bursa Malaysia yesterday, BLand said its wholly-owned subsidiary Berjaya Leisure (Cayman) Ltd (BLCayman) had entered into a capital contribution transfer agreement with Sulyna for the proposed stake disposal. The remaining 30% stake is still held by Le Thi Chi Private Enterprise (25%) and Long Beach J S Co (5%).
Under the deal, BLand will also waive all amounts owing by BLong Beach to BLCayman, which stood at 87.5 billion dong as of Jan 31, 2017.
The carrying value (inclusive of inter-company debts) of BLong Beach as of Jan 31, 2017 was about 212.24 billion dong.
Sulyna is involved in the hotel business, real estate trading, tourism and other leisure-related services. BLand shares fell one sen or 1.67% to close at 59 sen yesterday, giving it a market capitalisation of RM2.94 billion.
This article first appeared in The Edge Financial Daily, on Feb 16, 2017.
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