PLB Engr disposes of land for RM22m

PLB Engineering Bhd's wholly-owned sub-subsidiary, Pelangi Sehati Development Sdn Bhd, has disposed of a vacant freehold in Seberang Perai Selatan to Chin Hin Land Sdn Bhd for RM22.183 million.

In a filing to Bursa Malaysia today, PLB said the disposal was in line with the group's strategy of preserving capital value and strengthening the balance sheet via realising assets which can then be developed in other projects and investments.

"The disposal is expected to result a one-off gain (net of tax) of RM5 million (estimated) to the group after deducting the development cost incurred and other sundry expenses fees," PLB said.

Proceeds from the disposal would be utilised for working capital and/or repayment of bank borrowings, the company said.

As at Aug 31, the total bank borrowings of the PLB amounted to approximately RM56.98 million. -- Bernama



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PLB Engineering to gain RM5m from disposal of land

KUALA LUMPUR (Dec 13): PLB ENGINEERING BHD [] expects a one-off net gain of RM5 million from the disposal of a piece of freehold land in Seberang Perai for RM22.18 million.

The company said on Tuesday that its wholly owned sub-subsidiary Pelangi Sehati Development Sdn Bhd had entered into an agreement with Chin Hin Land Sdn Bhd to dispose the land.

PLB Engineering said its cost of investment in the land was RM6.34 million and that the land was acquired in July 2005, adding that the net book value of the land is RM10.24 million as per Pelangi’s audited financial statements as at Aug 31, 2011.

The company said the entire proceeds from the disposal (net of estimated expenses) would utilised to pare down its borrowings.

The company said that as at Aug 31, 2011, its total bank borrowings amounted to approximately RM56.98 million.

“Assuming the entire proceeds from the disposal were utilised to pare down borrowings, the annual savings in interest is expected to be approximately RM1.6 million based on an average interest rate of approximately 8% per annum.

“The proceeds from the disposal are expected to be fully utilised in 2012,” it said.

PLB Engineering said the disposal was in line with its strategy of preserving capital value and strengthening the balance sheet via realising assets which can then be deployed in other projects and investments to maximise the returns and/or for repayment of borrowings.




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PLB Land to buy land in Penang

KUALA LUMPUR: PLB Engineering Bhd’s unit, PLB Land Sdn Bhd, has agreed to buy two plots of land in Ayer Itam, Penang, from individual vendors for RM6.5 milion last Friday.

The plots, measuring 4,563 sq m and 5,178 sq m respectively, will be used for future development, the company said in a filing to Bursa Malaysia yesterday.



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KLCI remains in the red at mid-day break

KUALA LUMPUR (Nov 22): The FBM KLCI remained in negative territory at the mid-day break on Tuesday as investor confidence at key Asian markets continued to sapped by the uncertainties in the outlook for Western economies.

At the mid-day break, the FBM KLCI was down 2.87 points to 1,431.21.

Gainers trailed losers by 178 to 416, while 260 counters traded unchanged. Volume was 728.09 million shares valued at RM520.24 million.

The ringgit weakened 0.23% to 3.1883 versus the US dollar; crude palm oil futures for the third month delivery fell RM34 per tonne to RM3,157, crude oil slipped 22 cents per barrel to US$96.70 while gold added US$2.18 an ounce to US$1,679.50.

At the regional markets, Japan’s Nikkei 225 fell 0.85% to 8,277.03, Hong Kong’s Hang Seng Index lost 0.98% to 18,047.54, the Shanghai Composite Index was down 0.94% to 2,392.47, Taiwan’s Taiex lost 0.66% to 6,996.21, South Korea’s Kospi shed 0.13% to 1,817.69 and Singapore’s Straits Times Index edged down 0.03% to 2,697.20.

On Bursa Malaysia, Harvest Court was the top loser and fell 42 sen to 98 sen; Panasonic lost 36 sen to RM19.60, Triplc down 30 sen to 70 sen, Sarawak Oil Palms 21 sen to RM4.45, SHL 20 sen to RM1.15, PLB 13.5 sen to 83.5 sen, DKSH 13 sen to RM2.20, BHIC 12 sen to RM2.70 while Petronas Gas fell 10 sen to RM13.06.

Meanwhile, Sumatec became the latest company to be queried by Bursa Malaysia Securities over the recent sharp rise in price and high volume of the securities.

The regulator had on Tuesday cautioned investors to be take note of the company’s reply when making their investment decision.

Sumatec rose 5.5 sen to 26 sen with 81 million shares done, while its warrants rose 2 sen to 15 sen with 41.4 million units traded.

Other actives included Compugates, DPS Resources, MMSV, Tricubes, GPRO, SAAG and SYF Resources.

Among the gainers, KrisAssets added 40 sen to RM5, Dutch Lady up 30 sen to RM23.70, BLD PLANTATION []s and TSH Resources 17 sen each to RM6.90 and RM3.85, Knusford, Nestle and BAT added 14 sen each to RM1.72, RM50 and RM46.82, while United Plantations and Ekovest lost 12 sen each to RM18.42 and RM2.62.



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