KUALA LUMPUR (Aug 15): ECM Libra Group Bhd is selling an 11-storey hotel in George Town, Penang, along with adjoining freehold land, for RM51.89 million in cash. The sale is expected to net the group a gain of RM24.72 million.
In a filing with Bursa Malaysia, it said its unit, ECML Hotels, signed a conditional sale agreement with Wealthpro Holdings for the 258-room hotel, which sits on 2,053 sq m of land. The property was bought in 2018 for RM21 million and had a book value of RM22.87 million as of Dec 31, 2024. An independent valuer estimated its market value at RM51.5 million.
Proceeds from the sale will go towards new projects (RM32.29 million), loan repayments (RM10 million), working capital (RM5.3 million), and related costs (RM4.3 million).
The group said the sale is part of its strategy to unlock investment value and strengthen its finances. Post-sale, net asset per share is expected to rise to 44 sen from 39 sen, and gearing will drop to 0.25 times from 0.33 times. Earnings per share are projected to jump to 5.4 sen from 0.41 sen due to the one-off gain.
The deal is expected to be completed by the first quarter of 2026, pending shareholder approval.
Shares of ECM Libra were not traded on Friday. It was last traded at 18.5 sen on Thursday for a market capitalisation of RM91.6 million.
Source: The Edge Malaysia (18 August 2025)