KUALA LUMPUR (Oct 21): Seni Jaya Corp Bhd is disposing of five parcels of shop offices located in Jalan Raja AbdullahKuala Lumpur for RM11.5 million, as part of the group’s business transformation plan to rationalise non-core assets and unlock their value.

In a Bursa Malaysia filing on Friday (Oct 21), Seni Jaya said its wholly owned subsidiary Seni Jaya Sdn Bhd has entered into five sale and purchase agreements (SPAs) with UOB Equity Sdn Bhd for the properties.

Seni Jaya said the proposed disposal will enable the group to use the proceeds for future investments and acquisitions of businesses aligned with the business transformation plan to expand its billboard portfolio to offer a comprehensive out-of-home advertising solution. In addition, the proceeds also enhance working capital to facilitate its operating activities.

Out of the RM11.5 million in total proceeds from the exercise, RM10.3 million will be for capital expenditure including new outdoor asset expansion to other main market centres, as well as new digital billboard developments in the Klang Valley, RM524,000 will be for repayment of bank borrowings while the balance of RM675,000 will be for related expenses of the disposal.

Subsequently, the company expects a gain of approximately RM6.63 million after deducting all the estimated expenses from the exercise, which is expected to be completed within three months from the SPAs’ date.

The properties, which are all 28 years of age, are used as shop offices with the total office areas between 2,906 sq m and 3,950 sq m.

Their net book value as of June 30, 2022 ranged between RM603,312 and RM820,055, while the purchase considerations for the properties were as low as RM1.99 million to as high as RM3.2 million.

Seni Jaya’s share price closed 10.64% or 25 sen higher at RM2.60 on Friday, bringing the group a market capitalisation of RM126.2 million.

Source: EdgeProp, 24 October 2022

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