Advance Synergy to gain RM2.38m from sale of 40% stake in London property

KUALA LUMPUR (Aug 7): Advance Synergy Bhd is disposing of its indirect stake in 40%-owned associate Helenium Holdings Ltd, which owns a freehold mixed-use property in Kilburn High Road, London for £8.73 million (RM46.64 million).

Advance Synergy said the proposed disposal will enable it to realise cash and have ready capacity for any high-potential investment or acquisition.

The proposed disposal is expected to result in a gain of RM2.38 million to the group or an increase in earnings per share of 0.26 sen based on the current total number of shares in issue.

In a filing with Bursa Malaysia yesterday, Advance Synergy said its indirect wholly-owned subsidiary Synergy Realty Inc (SRI) has agreed via a memorandum of sale dated Aug 3 to dispose of its entire investment of 40% equity interest in Helenium to privately owned investment vehicle EEH Ventures Ltd.

EEH Ventures will have 28 days from receipt of full legal documentation to simultaneously exchange and complete this transaction.

The cost of SRI’s investment in Helenium was RM20.618 million as at June 30, while the net book value of the property stood at £20.34 million.

Advance Synergy said after providing for SRI’s share of repayment of the existing bank loan in Helenium, proceeds from the disposal £5.18 million will be used for the funding requirements of Advance Synergy Group.

It is worth noting that Advance Synergy chairman Datuk Ahmad Sebi Bakar and executive deputy chairman Anton Syazi Ahmad Sebi are also the directors and shareholders of Helenium.

Advance Synergy shares closed unchanged at 16 sen yesterday, valuing it at RM148.67 million.

This article first appeared in The Edge Financial Daily, on Aug 7, 2018.

For more stories, download EdgeProp.my pullout here for free.