KUALA LUMPUR (Feb 2): Practice Note 17 (PN17) company Perak Corp Bhd is looking to raise RM63.5 million by entering into an early settlement of its entitlement over a 247.85-acre joint development project with ARX-YSC Sdn Bhd at Muallim, Perak.
This is one of the four leasehold lands that Perak Corp bought in 1997 for RM41.82 million, which collectively span 424.7 acres and both parties originally planned to jointly develop.
The 247.85-acre plot for which Perak Corp is seeking early settlement had been estimated to give rise to a profit sharing of RM79.28 million to the group, based on past stock exchange filing.
Nonetheless, Perak Corp on Friday said this land is charged to CIMB Bank Bhd for a loan facility, and the proposed early settlement provides a fundraising avenue to repay its borrowings.
The proposed early settlement is estimated to give rise to a gain on disposal of RM21.97 million and reduce Perak Corp's gearing ratio by 15%.
The proposal, which is expected to be completed by the fourth quarter this year, requires shareholders’ approval at an extraordinary general meeting to be convened.
In a separate announcement, Perak Corp updated that it is still working on formulating its regularisation plan to address its financial condition.
The group has until Feb 10 to submit its regularisation plan to Bursa Malaysia for approval.
Shares of Perak Corp closed one sen or 2.2% higher at 46 sen on Friday, giving it a market capitalisation of RM46 million.