LBS Bina Group Bhd's shareholders today approved the disposal of its entire interest in Lakewood Golf Club and Zhuhai Development Land for HK$1.65 billion (about RM681 million) to Zhuhai Holdings
Investment Group Ltd.

With the approvals from the relevant authorities and shareholders, both LBS and Zhuhai Holdings are set to complete the sale and purchase agreement (SPA) soon.

"The timely proposed disposal will unlock the value of LBS' investment in China," managing director Datuk Lim Hock San told reporters after the group's extraordinary general meeting (EGM).

Under the proposed mode of settlement in the SPA, LBS will be receiving cash of HK$500 million and Promissory Notes for the sum of HK$850 million.

LBS will also receive 225.56 million new shares in Zhuhai Holdings issued at HK$1.33 per share, worth HK$300 million.

Zhuhai Holdings is listed on the Hong Kong Stock Exchange.

In line with the terms of the agreement, LBS will subsequently be a substantial shareholder of Zhuhai Holdings and will be entitled to appoint a non-executive director on the latter's Board.

"Once we become a substantial shareholder in Zhuhai Holdings, LBS will indirectly benefit from the Zhuhai Development project through potential appreciation of Zhuhai Holdings' share value and any future dividend payments," he said.

Upon completion, LBS is set to reap a hefty proforma gain of RM309 million for the 2013 financial year.

Meanwhile, the group is optimistic of achieving its RM1.0 billion target sales this year as it has a few more projects to be rolled out by year-end.

LBS plans to launch new projects in Cameron Highlands, the Klang Valley and Batu Pahat, Johor.

Lim said its current sales stood at RM326 million and as of May 31, 2013, unbilled sales amounted to RM702 million.

LBS Bina currently has 17 ongoing projects worth RM1.9 billion, he added.-- Bernama