Picorp disposes of Saudi property for RM5.1 mil

KUALA LUMPUR (April  4): Loss-making Progressive Impact Corporation Bhd (Picorp) is disposing of a commercial villa in Saudi Arabia for 4.3 million riyals (RM5.1 million).

The sale is expected to increase the group’s earnings per share by 0.17 sen for the financial year ending Dec 31, 2017 (FY2017), Picorp said in a filing with Bursa Malaysia.

It added that the sale is also expected to increase its net earnings by about 938,067 riyals, or 0.17 sen per share, for the year.

Picorp said its wholly-owned unit, Asma Environmental Solutions LLC, has proposed to sell the villa to an individual, Dr Fadil Fouad Basyyoni.

Saudi Asma received 3.3 million riyals from Fadil yesterday, and the balance of one million riyals will be offset against the accumulated total retention sum payable by Saudi Asma to Fadil for his provision of business development consultancy services to Saudi Asma.

The property was purchased by Saudi Asma in April 2010 and the original cost of investment was about three million riyals (RM2.5 million based on the prevailing exchange rate at the time of acquisition).

Picorp said Saudi Asma no longer has use for the building and the disposal will help to unlock its investment in the building and the proceeds would be used to reduce the amount owing by Saudi Asma to Picorp.

Picorp reported a net loss of RM6.7 million or 1.02 sen per share for FY16, and a net loss of RM2.3 million or 0.35 sen per share for FY15.

Picorp’s share price rose 2.94% to 17.5 sen yesterday, with 267,800 shares changing hands, giving it a market capitalization of RM114.9 million. — theedgemarkets.com

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