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- The property developer is selling a 51% stake in Andaman Daya Sdn Bhd, which owns 58,308 square metres of leasehold land in Dengkil, to Sinar Pavilion Sdn Bhd, according to an exchange filing on Friday.
KUALA LUMPUR (Sept 26): HCK Capital Group Bhd (KL:HCK) is selling a majority stake in a company that owns land in Dengkil, Selangor for RM61 million in cash to streamline its business operations.
The property developer is selling a 51% stake in Andaman Daya Sdn Bhd, which owns 58,308 square metres of leasehold land in Dengkil, to Sinar Pavilion Sdn Bhd, according to an exchange filing on Friday.
The buyer, Sinar Pavilion, is 95%-owned by Morgan Yung Sze Kiong and 5% by Joseph Wong Fook Ming.
HCK Capital said it will retain a 49% equity interest in Andaman Daya.
The company said proceeds from the stake disposal will be used to fund future property development activities, working capital and repay bank borrowings.
The company also expects to book a net gain of RM75.91 million from the disposal—a gain from the disposal plus a fair value gain on the remaining 49% interest in Andaman Daya.
HCK Capital said the disposal will enable the company to streamline its operations, optimise resource allocation, and focus on strengthening its core and performing subsidiaries.
“This strategic shift is expected to enhance operational efficiency, improve profitability and support long-term value creation for shareholders,” the company said.
The disposal is expected to be completed within nine months from when the building plan for the first phase of the development planned atop the land is approved by authorities.
Shares in HCK Capital ended one sen or 0.46% higher at RM2.20 on Friday, valuing the company at RM1.37 billion.
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