Enra Group Bhd has disposed of its 70% stake in property development firm Landmark Zone Sdn Bhd (LZSB) for RM5.6 million.
In a filing to Bursa Malaysia, Enra noted the divestment plan will enable the group to monetise its investment in LZSB and provide the company with funds to invest in other more earnings accretive opportunities and to meet working capital requirements.
The purchaser, Law Wai Cheong, is a director of LZSB. He is also the son of Hiap Teck Venture Bhd executive deputy chairman Tan Sri Law Tien Seng.
LZSB completed its sole mixed development project, Shamelin Star, in Taman Shamelin Perkasa, Kuala Lumpur in December 2016.
Enra said proceeds from the disposal will be used for investment or development of new viable businesses or assets and working capital.
The group said there will be a net loss on disposal of about RM820,000.
The transaction will also reduce its earnings per share by one sen for the financial year ending March 31, 2018. The Disposal was completed yesterday.