Farlim up prior to 1MDB deal
KUALA LUMPUR: The share price of loss-making Farlim Group (Malaysia) Bhd shot up by as much as 30.85 per cent yesterday, prior to an announcement of a RM112.5 million asset disposal to 1Malaysia Development Bhd (1MDB).
In a filing to Bursa Malaysia after the market had closed yesterday, the Penang-based property developer announced that it has inked a sale and purchase deal with 1MBD's subsidiary, 1MDB RE (Ayer Itam), to dispose of 46.75ha of freehold land it owns in Ayer Itam for RM112.5 million.
Farlim's shares ended 10.5 sen, or 22.34 per cent, higher at 57.5 sen prior to the announcement, trading like hot cakes with 32.5 million shares changing hands.
Farlim is estimated to fetch a gain of RM46.11 million from the deal. It had invested RM57.61 million on the land.
Sources said 1MDB plans to utilise the land to build affordable homes in the state.
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