The group said the disposal of the malls – Kiara 163 Retail Park in Mont Kiara for RM270.5 million and AEON Seri Manjung in Perak (RM152 million) – will be satisfied by ALX Asset in cash through the issuance of medium-term notes (MTNs) under a proposed asset-backed medium-term-notes (ABS MTN) programme of up to RM500 million in nominal value.
In an earlier disclosure, YNH told shareholders the proposed disposal was a related party transaction, and as such its chairman and executive director Yu Kuan Chon and MD Yu Kuan Huat had abstained from all board deliberations, meetings, and on voting on resolutions pertaining to this disposal.
In its media release today, YNH independent non-executive director Ching Nye Mi says the group is appreciative of the trust and confidence its shareholders have placed in YNH and its strategic initiative to unlock the value of the two malls.
“Proceeds from the disposal will be utilised for repayment of bank borrowings and working capital requirements of the group as well as to pay for the said exercise,” Ching said.
“This disposal will generate an infusion into the group which will strengthen our balance sheet whilst allowing us to gain more headroom to secure future funding required to finance other exciting projects.”
The group is also expected to record a pro-forma net gain of approximately RM61 million from this disposal, which is expected to improve net assets and earnings.
YNH also remains optimistic on its outlook of the property sector and expects an estimated rental income of RM6.4 million per annum from its properties in Perak.
“Our on-going property development projects including Solasta Dutamas and future property development project in Genting Highlands, are expected to contribute to the group’s performance in the foreseeable future,” Ching added.
Recently, YNH lodged police reports over what it claims to be defamatory and false statements against the company by various unnamed news portals and websites.
It has also lodged complaints on this matter with regulatory authorities including the Malaysian Communications and Multimedia Commission (MCMC).
The Main Market-listed developer claimed these portals and websites have been publishing a series of articles containing “serious allegations, accusations and inference” against the company, its directors, management and shareholders.
YNH’s share price closed unchanged today at RM4.70 with a market capitalisation of RM2.49 billion.