KUALA LUMPUR: TSH Resources Bhd is expected to realise a net disposal gain of RM398 million from the proposed disposal of its North Kalimantan landbank for RM679 million, Kenanga Research said.
The firm said the disposal would be positive for the company as the land was not generating profit or cash-flows.
“Assuming the Heads of Agreement (HoA) leads to a simple outright cash sale, the proposal is welcomed on several counts – earnings per share (EPS) uplift thanks to lower interest cost moving forward due to debts being repaid, less volatile EPS once debts are trimmed and an acceleration in new or re-planting which should translate to earlier g