Federal Hardware Engineering, a wholly-owned subsidiary of Federal International, has granted an option for the disposal of its properties located at 47 Genting Road and 49 Genting Road to Markpoint Engineering for a total value of $16.8 million.
Federal says that the proposed disposal is in line with the group’s business plan to dispose of non-core assets and to strengthen its cash position, with the two freehold properties holding a book value of $13.8 million as at June 2022.
In the event that the option is exercised and the proposed disposal is completed, it is expected to have a material positive impact on earnings per share (EPS) or net tangible assets per share for Federal’s financial year ending Dec 2022.
Markpoint paid a non-refundable option fee of $168,000 or 1% of the properties’ aggregate consideration in exchange for the grant of the option.
Upon exercise of the option, Markpoint will pay the rest of its deposit of $672,000 or 4% of the properties’ aggregate consideration, with the remaining 95% to be paid upon completion of the proposed disposal.
Shares in Federal International closed 0.1 cents or 0.67% up at 15 cents on Aug 24.
