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KUALA LUMPUR: Talam Corp Bhd, through its subsidiary Galian Juta Sdn Bhd, has agreed to sell two pieces of land measuring 41.69 acres and 8.1 acres to Malaysian Allied Health Sciences Academy Sdn Bhd (MAHSA) for RM35.41 million.
The debt-laden company entered into two sales and purchase agreements (S&Ps) with the healthcare education provider for the two pieces of leasehold land in Kuala Langat, Selangor in which the tenures expire on Feb 5, 2094.
“The sales proceeds generated from the proposed disposal will be utilitised to pare down the interest and principal to the entire loan facility granted by EON Bank Bhd to Galian Juta and the balance is for its infrastructure cost and working capital,” Talam said in a statement yesterday (March 22).
“The proposed disposal will assist Talam Group in reducing its bank borrowings and hence, reduce interest costs.
“The total purchase consideration was arrived on a ‘willing buyer and willing seller’ basis, and based on RM16 and RM18 per square foot respectively,” it said, adding the original cost of investment for the land was RM34.7 million, and the proposed disposal was not subject to the approval of Talam’s shareholders.
Talam said the proposed disposal was expected to reduce Talam’s gearing ratio to 1.91 per share from 1.92 based on its financial statements as at Jan 31, 2009, although the net gain of RM705,672 was not expected to have any material effect on earnings per share for the financial year ended Jan 31, 2010.
Earlier this month, Talam had settled a RM241.3 million debt to Menteri Besar Selangor (Inc) that it had owed for a decade through the disposal of properties. It was earlier reported that the debt settlement would decrease Talam’s gearing to 1.77 times from the 1.92 times at present.
Based on documents from the Selangor government, total debt owed by Talam to the state was RM392 million and was never recognised in its books.
The debts resulted from the property projects that the company had jointly developed with state agencies, namely Kumpulan Hartanah Selangor Bhd, Universiti Industri Selangor and Permodalan Negeri Selangor Bhd.
Talam was classified a Practice Note 17 (PN17) company since Jan 31, 2006 after its auditors failed to provide an opinion on its results of its financial year ended Jan 31, 2006. It had also defaulted on term loans and bonds obligations.
An earlier report by The Edge Financial Daily said Talam had made at least four asset disposals since it fell into PN17, and had since undertaken a capital reduction and share-split exercise, in addition to issuing securities to address certain defaulted debts.
This article appeared in The Edge Financial Daily, March 23, 2010.
The debt-laden company entered into two sales and purchase agreements (S&Ps) with the healthcare education provider for the two pieces of leasehold land in Kuala Langat, Selangor in which the tenures expire on Feb 5, 2094.
“The sales proceeds generated from the proposed disposal will be utilitised to pare down the interest and principal to the entire loan facility granted by EON Bank Bhd to Galian Juta and the balance is for its infrastructure cost and working capital,” Talam said in a statement yesterday (March 22).
“The proposed disposal will assist Talam Group in reducing its bank borrowings and hence, reduce interest costs.
“The total purchase consideration was arrived on a ‘willing buyer and willing seller’ basis, and based on RM16 and RM18 per square foot respectively,” it said, adding the original cost of investment for the land was RM34.7 million, and the proposed disposal was not subject to the approval of Talam’s shareholders.
Talam said the proposed disposal was expected to reduce Talam’s gearing ratio to 1.91 per share from 1.92 based on its financial statements as at Jan 31, 2009, although the net gain of RM705,672 was not expected to have any material effect on earnings per share for the financial year ended Jan 31, 2010.
Earlier this month, Talam had settled a RM241.3 million debt to Menteri Besar Selangor (Inc) that it had owed for a decade through the disposal of properties. It was earlier reported that the debt settlement would decrease Talam’s gearing to 1.77 times from the 1.92 times at present.
Based on documents from the Selangor government, total debt owed by Talam to the state was RM392 million and was never recognised in its books.
The debts resulted from the property projects that the company had jointly developed with state agencies, namely Kumpulan Hartanah Selangor Bhd, Universiti Industri Selangor and Permodalan Negeri Selangor Bhd.
Talam was classified a Practice Note 17 (PN17) company since Jan 31, 2006 after its auditors failed to provide an opinion on its results of its financial year ended Jan 31, 2006. It had also defaulted on term loans and bonds obligations.
An earlier report by The Edge Financial Daily said Talam had made at least four asset disposals since it fell into PN17, and had since undertaken a capital reduction and share-split exercise, in addition to issuing securities to address certain defaulted debts.
This article appeared in The Edge Financial Daily, March 23, 2010.
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