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Recent Trend of Sale And Leaseback Deals Involving Listed Companies

As discussed in my earlier articles on Sale & Leaseback or REIT, there are many reasons for such disposal which includes

• focusing on its core competencies;

• cash strap hence getting cheaper & larger funding to provide for working capital

• improving fixed assets utilization;

• realized gain from disposal of fixed assets;

• disposal of non-core fixed assets;

• interest saving as proceeds used to repay hefty debts;

• provides fund for bigger expansion;

• the ability to sell off core assets and at the end of the period still able to retain the assets ( clauses provided in the sale and leaseback arrangement)

Seller/Business	Buyer	Date Announced	Property	Indicative Price (Rm mil)
Advance Synergy ( Diverse)	Amanah Raya Bhd	13/12/05	3 hotels in Alor Star, Cherating & Langkawi	99.87
Seal Inc (Diverse)	Amanah Raya Bhd	23/12/05	Selayang Mall Shopping Centre	120
Aeon Co (M) (Retailer)	Equity Nirvana Sdn.Bhd	28/12/05	Kinta City Shopping Centre	121
C.I.Holdings (Manufacturer)	Amanah Raya Bhd	18/1/06	Industrial leasehold land with buildings in Bandar Baru Bangi	23
SEG International ( Education)	Amanah Raya Bhd	21/2/06	(i) SEGI College, Subang Jaya (ii) 2 commercial buildings in Serdang	48.3 19
AIC Corp (Manufacturer)	Amanah Raya Bhd	9/3/06	Leasehold land with offices & factories in Shah Alam	19
Silver Bird Group (Manufacturer)	Amanah Raya Bhd	27/3/06	Main manufacturing facility in Shah Alam	93.1
Tamadam Bonded Warehouse (Warehouse & distribution)	Amanah Raya Bhd	28/3/06	Leasehold land with industrial warehouse in Klang	31

• Sale and Leaseback
• Illustrated Example Of Sale And Leaseback-Tamaddan Berhad
• What is Sukuk-al-Ijara ( Sale and leaseback structure)
• Government Owned Amanah Raya Plans REIT Listing
• 2008 Highest Paid CEO Of Public Listed Companies
• Performance of Companies Listed in Bursa Saham Malaysia from 2007 to July 2009
• PUBLIC LISTED COMPANIES,NSTP & SARAWAK ENERGY BHD GOING PRIVATE

July 15, 2006   Posted in: Financial Strategy, Sources of Financing, TREASURY articles

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