Thakral accepts bid of $74m for Hong Kong warehouse properties

SINGAPORE - Mainboard-listed Thakral Corporation said on Friday (Aug 25) that it has accepted a successful bid of HK$420 million (about S$74.1 million) for the group's warehouse properties in Hong Kong at a public tender which closed on Thursday.

The bid price represents a significant premium of HK$205.1 million over the net book value of the properties, which is HK$214.9 million.

The net sale proceeds will be approximately HK$407 million, said Thakral.

The sale of the warehouse properties will be subject to shareholders' approval at an extraordinary general meeting to be convened at a later date, it added.

The warehouse properties comprise four floors of the Wah Tung Godown located at No. 4 Tung Yuen Street, Kowloon, with a total gross floor area of 98,928 sq ft.

A deposit of HK$20 million has been paid by the buyer, Good Hour International Limited.

The proposed sale is expected to be completed before Nov 22, 2017.

Should the transaction be approved and completed, the group's net tangible asset per share (NTA) will rise to S$1.02 from S$0.75 and its earnings per share (EPS) will surge to 26.04 cents from 0.32 cent.

Mr Natarajan Subramaniam, Thakral's independent non-executive chairman, said the sale will enable the group to recognise a profit of approximately HK$192 million.

It will also free up capital resources and enable the group to carry out its core businesses, particularly for investments in Japan, Australia and other markets which offer good growth potential, he said.