3rd Dec 2015 09:32
LONDON (Alliance News) - Aseana Properties Ltd Thursday said that it is continuing to work with its bankers in order to make its proposed USD10 million first capital return to shareholders, however, it warned that capital repayments may not happen until it makes more sales in its portfolio and has paid down some of its project-related debts.
The company had intended to make the first return to shareholders as of the end of September, and then to make further returns of capital as it raised cash as a result of disposals of assets in its portfolio. It still firmly plans to do so, it said.
It sold its Waterside Estates land for USD9.3 million, with payment in full due to be received by the end of the year, and made partial sales of its stake in Nam Long Investment Corp.
The company said it submitted an application to make its first capital distribution at the end of August, but at present consent from two lenders remains outstanding. Market conditions in Malaysia, caused by recent political events and the depreciation of the Malaysian ringgit, have caused a number of the company's lenders to become cautious about a capital return, it said. However, it believes that further discussions with the lenders and more portfolio sales will help to "resolve this situation."
Shares in Aseana were untraded Thursday morning. It last traded at USD0.475.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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