KUALA LUMPUR: IGB Bhd's unit Verokey Sdn Bhd has sold its entire 50 per cent stake in Black Pearl Ltd to HNG Blackfriars 1 Ltd for £104.37 million or about RM599.16 million.
In an exchange filing today, IGB said the company and Tower Ray Ltd, the remaining shareholder of Black Pearl, had on Oct 20 collectively entered into a sale and purchase agreement with HNG for £208.75 million (RM1.2 billion).
Black Pearl owns a freehold land at 18 Blackfriars Road in London.
IGB said Verokey would receive £60 million (RM344.44 million) in cash at completion of the payment, while the balance of £44.37 million (RM254.72 million) after 24 months completion of the second payment.
"The completion payment is for part of the debt which Black Pearl owed to Verokey. The second payment represents the balance of the debt which Black Pearl owed to Verokey and the value for Verokey's 50 per cent shareholding in Black Pearl, which has now been undertaken by the HNG and is evidenced by a loan note issued by the buyer which is secured on the property."
IGB said its original cost of investment was £5,000 (RM28,703) for the 50 per cent Black pearl stake.
Based on the latest consolidated audited financial statements of IGB as at December 31, 2020, the carrying amount of Verokey's investment in Black Pearl stood at RM370 million which included shareholder's advance to Black Pearl of RM376.5 million.
"The directors consider that the transaction is beneficial to the IGB group as it represents an opportunity for the group to realise its investment in Black Pearl," it said, adding that the proceeds would be used for general working capital.
"The transaction will result in an increase in the IGB group's net assets per share and earnings per share of about 21 sen each."
The transaction required no shareholder approval, it added.
