16th Jan 2014 17:04
LONDON (Alliance News) - Dragon-Ukrainian Properties & Development PLC Thursday said the board of Henryland Group Ltd, in which it has a 38% stake, has entered into an agreement with a unnamed third party to sell its six "big box" retail schemes for USD23.7 million.
Henryland owns six "big box" retail schemes in regions of Ukraine, of which three are fully operational and cash-generating.
Dragon-Ukrainian said the arrangement followed the sale by an affiliate of Dragon Capital Investments Ltd, its investment manager, of its shareholding in the principal tenant of the three operational schemes owned by Henryland, Nova Liniya, to an unrelated third party.
The transaction is expected to complete by the end of 2014 when all assets are transferred, but Henryland has already received an initial installment of about USD14.1 million.
The firm said immediately following the receipt of the installment, the board of Henryland approved the payment of USD13.8 million in dividends to its shareholders, of which Dragon-Ukrainian received USD5.3 million.
The disposal of Henryland's investment properties and payment of dividends will decrease Dragon-Ukrainian''s carrying value for its investment in Henryland by USD8.1 million, to approximately USD3.7 million, it said.
Following the completion of the disposal of the six properties, Henryland will no longer own any investment properties or other assets and is not intending to conduct any active business operations, it added.
Dragon-Ukrainian shares closed at 33.03 pence Thursday, down 0.22 pence or 0.7%.
By Anthony Tshibangu; [email protected];
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