KUALA LUMPUR, June 29 — Sunway Integrated Properties and Sunway Pinnacle have entered into a conditional sale and purchase agreement for the disposal of The Pinnacle Sunway for a cash consideration of RM450 million.
Both companies are wholly-owned indirect subsidiaries of Sunway Bhd.
In a filing to Bursa Malaysia, Sunway said the agreement was entered with RHB Trustees Bhd, being the trustee of Sunway Real Estate Investment Trust (Sunway REIT).
Sunway said that a substantial part of the proceeds from the proposed disposal will be utilised to repay existing borrowings, which is expected to reduce the gearing of the group, and potentially result in interest savings of approximately RM16.8 million per annum.
“The proceeds from the proposed disposal will result in an improvement in the cash flow of Sunway Group, and will improve the earnings per share of Sunway,” it added. — Bernama