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Proposed Disposal of Property To WCT Hartanah Jaya Sdn. Bhd., A Wholly Owned Subsidiary of WCT Land Sdn Bhd, Which Is In Turn a Wholly Owned Subsidiary of WCT Berhad For A Sale Consideration Of RM180.0 Million ("Proposed Disposal")

BackAug 28, 2012
Type Reply to query
Reply to Bursa Malaysia's Query Letter - Reference ID KA-120827-57383
Subject PROPOSED DISPOSAL OF PROPERTY TO WCT HARTANAH JAYA SDN. BHD., A WHOLLY OWNED SUBSIDIARY OF WCT LAND SDN BHD, WHICH IS IN TURN A WHOLLY OWNED SUBSIDIARY OF WCT BERHAD FOR A SALE CONSIDERATION OF RM180.0 MILLION ("PROPOSED DISPOSAL")
Description PROPOSED DISPOSAL OF PROPERTY TO WCT HARTANAH JAYA SDN. BHD., A WHOLLY OWNED SUBSIDIARY OF WCT LAND SDN BHD, WHICH IS IN TURN A WHOLLY OWNED SUBSIDIARY OF WCT BERHAD FOR A SALE CONSIDERATION OF RM180.0 MILLION ("PROPOSED DISPOSAL")
Query Letter Contents We refer to your Company's announcement dated 23 August 2012 in respect of the
aforesaid matter.

In this connection, kindly furnish Bursa Securities with the following
additional information for public release:-
1. To state the appropriate age of the building and the encumbrances, if any as
per Appendix 10A Part C(d) and (h) of the Listing Requirements.
2. To incorporate a statement from Audit Committee as per Appendix 10C(3) of
the Listing Requirements.
3. To also make available for inspection the valuation report by Messrs.
Jordan Lee & Jaafar on 15 February 2012.
Please furnish Bursa Securities with your reply within one (1) market day from
the date hereof.

Yours faithfully



KHOO KAY KWAN
Head, Issuers
Listing Division
Regulation

KKK/MZM/KA
We refer to our announcements made on 23 August 2012 and 24 August 2012 in respect of the Proposed Disposal of property to WCT Hartanah Jaya Sdn Bhd, a wholly owned subsidiary of WCT Land Sdn Bhd, which is in turn a wholly owned subsidiary of WCT Berhad, for a sale consideration of RM180.0 million.
We furnish herewith the following additional information for public release:-

1) The shopping mall (comprising a 4 level retail podium block and 2 levels of car park) erected on Lot 32665 held under freehold title Geran 413471, Mukim of Tebrau, District of Johor Bharu, State of Johor Darul Takzim ("the Property") received its Certificate of Fitness in year 2000. It has been abandoned for more than 8 years. The Property was acquired by MBSB pursuant to a Scheme of Arrangement of its borrower free from encumbrances. The Property was then transferred to Idaman Usahamas Sdn. Bhd. ("IUSB"), the wholly owned subsidiary of MBSB, in December 2011.
    Subsequently, a private caveat was lodged by a third party on the Property. IUSB/MBSB is of the opinion that there is no justification for the lodgement of the private caveat and has taken the necessary steps to remove the private caveat.

    Save for the private caveat, the property is free from encumbrances.

2) The Audit Committee, after having considered all relevant aspects of the Proposed Disposal, is of the view that the transaction is:-
    (i) in the best interest of the Company;
    (ii) fair, reasonable and on normal commercial terms; and
    (iii) not detrimental to the interest of the minority shareholders,

    on the basis that the consideration is higher than the net book value of the Property and the open market value of the Property which is RM124,548,127 and RM160,000,000 respectively.
3) The Valuation Report dated 15 February 2012 prepared by Messrs Jordan Lee & Jaafar is available for inspection at the registered office of MBSB at 11th Floor, Wisma MBSB, 48 Jalan Dungun, Damansara Heights, 50490 Kuala Lumpur, during normal business hours (from 8:30 a.m. to 5.30 p.m.) from Monday to Friday (except public holidays) for a period of three (3) months from the date of this announcement.

This announcement is dated 28 August 2012.

 


Announcement Info

Company Name MALAYSIA BUILDING SOCIETY BERHAD 
Stock Name MBSB
Date Announced 28 Aug 2012
Category General Announcement
Reference No MB-120827-66432