KUALA LUMPUR (Dec 31): Malayan United Industries Bhd (MUI) has said its British unit is disposing of a land together with a 111-room hotel in Shirley, West Midlands for £6.5 million (RM36.22 million).
The Regency Hotel Hospitality Ltd, a wholly-owned indirect subsidiary, is selling the property to Westbourne Leisure Ltd, MUI said in a bourse filing.
It said the proceeds from the disposal will enable the group to strengthen its cash flow, and will provide additional funds for its capital and operating expenditure as well as working capital.
“In addition, as some proceeds are earmarked for the repayment of bank borrowings, the group anticipates deriving potential finance cost saving as well as being able to reduce its gearing level.
“This in turn will reduce the indebtedness and repayment obligation of the group, and thereby improving the liquidity position of the group moving forward,” added MUI.
MUI’s shares closed unchanged at seven sen, with a market capitalisation of RM205.28 million. The stock has fallen 30% year to date.
Source: The Edge Markets