INTEGRATED LOGISTICS TO DISPOSE OF 50 PCT STAKE IN INL FOR RM50.4 MILLION

KUALA LUMPUR, Feb 13 (Bernama) -- Integrated Logistics Bhd (ILB) has proposed to dispose of its entire 50 per cent interest in Integrated National Logistics DWC-LLC (INL) to National Trading and Developing Establishment (NTDE) for United Arab Emirates (AED) dirhams 45 million or about RM50.4 million.

In a filing to Bursa Malaysia, Kenanga Investment Bank Bhd (Kenanga IB), the adviser on behalf of ILB, said ILB had entered into a share sale agreement with NTDE today. 

"Since INL's incorporation in 2006 up to the nine-month period ended Sept 30, 2018, its accumulated losses amounted to AED127.8 million, or approximately RM143.0 million, mainly due to depreciation charges, finance costs and operating expenditure over the years," said Kenanga IB.

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It also said since INL’s commencement of operations in 2012, ILB had funded a total of AED88.6 million for the former’s capital and operating expenditure, bank repayments and bank interest charges. 

"ILB is estimated to inject an additional funding of AED38.5 million or about RM43.1 million for repayment of bank loans and operating expenditure into INL over the next three financial years to fund its cash flow deficits," it said.

Kenanga IB said the board of ILB was of the view that based on ILB’s existing cash flow position, it might not be able to extend further loans to INL to fund its future cash flow deficits.

"In view of the above and taking into consideration the fair value range, the board has deliberated and decided to dispose of its equity interest in INL," it added.

Kenanga IB said the proceeds from the proposed disposal would contribute towards funding the group’s expansion plan which may include additional solar projects, in which the group sees growing contribution from the sector in the years to come.

-- BERNAMA