Thursday, September 23, 2010

Zelan disposes of 7.03m IJM shares

KUALA LUMPUR: ZELAN BHD [] disposed of 7.03 million IJM Corp Bhd shares in the open market on Sept 21 and 23 for a total consideration of RM35.97 million.

It said on Thursday, Sept 23 the shares, which represented 0.52% of IJM's paid-up capital, were disposed in the open market at an average price of RM5.13 per share.

'The original cost of investment of the sale shares was approximately RM4.14 per share at group level and RM3.50 per share at company level,' it said. As at Aug 31, the book value of the sale shares was about RM4.99 per share at group level.

Zelan said the proceeds would be used to pare down bank borrowings and to provide working capital for the group's operating requirements.

'The gain on the disposal at group level was approximately RM6.82 million''while at''the company level was approximately RM11.37 million,' it said

The disposal of the shares was part of the resolutions approved at Zelan's extraordinary general meeting held on Sept 7 to dispose of 30 million IJM shares.


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