Quick take: Mulpha shares up on asset disposal move

KUALA LUMPUR: Shares of Mulpha International Bhd rose this morning, after the group said it planned to dispose of its resort in Australia for RM188mil.

The real estate group rose 2.8%, or six sen to RM2.20, making it one of the top gainers on Bursa Malaysia. In the past one year, the counter has gained over 5.7%.

Mulpha has announced a plan to sell its 4-star hotel in Cairns, Australia for A$65mil (RM187.9mil).

The company said its units in Australia have entered into a property and business asset sale agreement with JY Cairns Esplanade Hotel Pty Ltd on July 16 for the disposal of Rydges Esplanade Resort.

Rydges Esplanade Resort is a 242-room hotel.

“The proposed disposal will enable the group to unlock the value of the property and generate cash for the group,” Mulpha said.

Mulpha acquired the hotel for A$42.3mil on Dec 20, 2016.

The sale, the company said, is expected to result in a net gain after tax of A$14.9mil.

Source: TheStar