Aseana Properties results for 2014 have been published. The net asset value rose from 0.75 cents to 0.76 cents and the share price from m0.44 cents to 0.45 cents. Increased sales of properties helped reduce the company’s borrowings and the net debt to equity ratio dropped from 120% to 110%. They did not pay a dividend.
The main driver of increased revenue was sales of surplus land at IHP and sale of apartments at their SENI Mont’ Kiara and Tiffani developments.
There is a discontinuation resolution scheduled to be put to shareholders at the next AGM. The Board doesn’t think now is a good time to liquidate the company. Instead, the Board believes that a policy of orderly realisation of the Company’s assets over a period of up to three years is a more appropriate approach in order to maximise the value of the Company’s assets and returns to Shareholders. They are thinking about getting shareholders to approve an amendment to the Company’s investment policy to enable a realisation of its assets in a controlled, orderly and timely manner, with the objective of achieving a balance between periodically returning cash to Shareholders and maximising the realisation value of the Company’s investments. If the Proposals are adopted, the Board aims to complete the disposal of the Company’s assets by June 2018.
ASPL : Aseana Board mulling managed liquidation of portfolio