By THE STAR
KUALA LUMPUR: Property developer LBS Bina Group Bhd has declared a tax-exempt special dividend of eight sen per ordinary share from the first tranche of cash proceeds received from the disposal of the company’s China assets amounting to HK$500mil (RM212.67mil).
The dividend is to be paid on Oct 18, 2013.
Besides the HK$500mil, the company will also gain 225.6 million consideration shares in Zhuhai Holdings Investment Group Ltd and promissory notes for the deferred cash payment of HK$850mil (RM361.55mil).
LBS had in July signed a HK$1.65bil deal with Zhuhai Holdings to dispose of the entire equity interest in two of its subsidiaries in a cash and share deal.
The company had declared a dividend of 2.5 sen for the financial year ended Dec 31, 2012 (FY12), slated for payout in September.
When the dividend for FY12 and the special dividend of eight sen is combined, LBS will be paying out a total dividend of 10.5 sen for the year 2013.
Subsequent to the receipt of part of the disposal consideration, LBS plans to reward shareholders by enhancing its dividend policies.
LBS said it would propose four more special dividend payments of six sen per share or up to 40% of each tranche received, whichever was lower, from 2014 to 2017, as more cash proceeds from the sale flow in.
The agreement between LBS and the Hong Kong-listed Zhuhai Holdings holds the latter to four annual instalments to LBS beginning 2014.
In addition to the proposed special dividends, the company will also, with effect from financial year 2013, adopt a policy to pay a minimum normal dividend based on 30% of its profit after taxation for each financial year.
Speaking at a press briefing to announce the special dividend yesterday, LBS managing director Datuk Lim Hock San said both policies would not impair the company’s cash requirement or board-approved plans.
LBS currently has 17 ongoing projects, seven of which are low-cost housing.
Lim said various proposals for joint-venture projects in Kota Kinabalu, Johor, Selangor and Kuantan had come in over the past few months.
“We will go into Kota Kinabalu eventually.
“For now, we will focus on Johor Baru,” he emphasised.
LBS owns 2,115 acres of land in Malaysia; 1,808 acres of which are still undeveloped.
– Malaysia Property News