KUALA LUMPUR: Golden Land Bhd’s share price tumbled 14.6% to a low of RM1.63 on Tuesday as investors were quick to lock in gains amid concerns about it becoming an affected listed issuer.
At midday, it fell 28 sen to RM1.63 – the lowest since June 1.
There were 3.98 million shares done at prices ranging from RM1.59 to RM1.91.
Golden Land’s share price had surged from RM1.35 on May 28 to a high of RM1.91 on June 5 before it was suspended on Monday for an announcement about the sale of four companies for RM655mil cash to Felda Global Ventures Holdings Bhd (FGV).
FGV is buying four plantation-based firms and 836.1ha oil palm land in Sabah from Golden Land.
For FGV, the proposed acquisitions are expected to improve its brownfield land and age profile of its oil palms.
Golden Land sees the proposed disposals as offering an opportunity for the group to unlock and realise the value of its investments in the companies and land being sold.
However, Golden Land may be classified as a “cash company” and/or an “affected listed issuer” pursuant to Practice Note 16 and Practice Note 17 (PN17) of the Listing Requirements. This means it would need to submit a regularisation plan, as the board plans to maintain the company’s listing status.
StarBiz reported the land is currently charged to Hong Leong Bank Bhd (HLBB) as part of the security for loan given to Golden Land. Its market value, as assessed by CH Williams Talhar & Wong (Sabah) Sdn Bhd, is RM71.72mil.
Golden Land would procure the redemption statement issued by the relevant financiers in respect of the borrowings of the four subsidiaries and for the purposes of releasing all securities offered by the companies as third-party securities for any borrowings of the Golden Land group.
The company would also obtain a redemption statement from HLBB for the partial release of security in respect of the loan granted by HLBB to Golden Land to facilitate the discharge of charge on the land.
The sale and purchase of the land and the shares will be completed within three months from the unconditional date or any other date that Golden Land and FGV decide later.
Golden Land estimated that the group would gain RM15.23mil from the proposed disposals. However, it has yet to determine the amount of the net proceeds and how exactly the money would be used.
Golden Land, which would still own about 8,497ha of plantation lands after the proposed exercise, said the disposals may trigger criteria under PN17.
The continuous listing of Golden Land on the Main Market may then depend on the ability of board and management to formulate a regularisation plan within a stipulated period.
