KUALA LUMPUR, April 10 (Reuters) - Malaysian property firm LBS Bina Group Bhd is selling two of its Hong Kong units, involved in property and golf course developments, to Zhuhai Holdings Investment Group Ltd for 657.69 million Malaysian ringgit ($216.59 million).
The sale for cash and shares will see LBS Bina emerge with a 16.78 percent stake in the Zhuhai, the Hong Kong-listed hotel management firm, according to a local stock exchange filing on Wednesday.
“As a substantial shareholder of Zhuhai Holdings upon completion of the proposed disposal, LBS Bina, via Dragon Hill (LBS’s subsidiary that owns the two units to be sold), will contribute its expertise to the future development of the enlarged entity,” the company said.
“Barring any unforeseen circumstances, the potential earnings arising from the proposed development are expected to contribute positively to the future earnings of LBS Bina,” it added.
LBS Bina is expected to record a gain on disposal of some 240.39 million Malaysian ringgit ($79.17 million).
Shares in LBS Bina rose 6.73 percent to 1.11 ringgit on Wednesday, while the Kuala Lumpur market’s main index was up 0.35 percent. ($1=3.0365 Malaysian ringgit) (Reporting By Yantoultra Ngui; Editing by Greg Mahlich)