Landmarks to sell assets

Landmarks to sell assets
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KUALA LUMPUR: Landmarks Bhd is finalising plans which may involve disposing of certain non-core assets and signing joint-venture agreements.

Chairman Oh Teik Tatt declined to furnish details at the company AGM yesterday but said everything was going as planned, and announcements to Bursa Malaysia would be made accordingly.

“We expect to finalise the masterplan on Bintan (Treasure Bay), our project in Indonesia, around the fourth quarter. We will talk about it when everything is ready,” he said.

He said Landmarks' focus was to hive off certain non-strategic assets and de-gear its balance sheet.

This was to place the company in a better footing for opportunities that might crop up in its mainstay – resorts, hospitality and wellness business, he added.

Among the assets which may be divested are its 20% stake in Teknologi Tenaga Perlis Consortium Sdn Bhd, an independent power producer undertaking the development and operation of a 650MW power plant in Perlis, and a 26.6% stake in Shangri-La Hotels (M) Bhd.

Oh added that Landmarks was exploring several possibilities and would make a firm decision after considering all avenues.

The company recently concluded the sale of wholly-owned unit Sungei Wang Plaza Sdn Bhd for RM284.8mil.

Much of Landmarks' plans are focused on developing a RM4bil resort on Bintan Island, via the acquisition of 64.5% in Bintan Treasure Bay Pte Ltd from Bold Impact Enterprises Ltd and Complete Win Group Ltd for some RM355mil.

This project is expected to start contributing to Landmarks' bottomline as early as next year.

“It will be developed over seven to eight years and expected to be funded through various means, including joint ventures, turnkey contracts, pre-selling of some plots and internal funds,” Oh said.

Landmarks' board believed this investment would be the main catalyst for its next phase of growth.

The company posted a net profit of RM15.9mil on RM36.4mil in sales for the first three months ended March, down 23% and 22% respectively from the previous corresponding period.

For the period under review, the company has RM245.4mil long-term liabilities while its shareholders' fund stood at about RM500mil.

Landmarks' shares closed at RM1.95 yesterday.