KSeng Bhd ... May 2009

Keck Seng (M) Bhd’s indirect subsidiary KSD Enterprises Ltd is disposing of its hotel in Quebec, Canada, named Four Points by Sheraton Hotel & Conference Centre, to 4977 NWT Ltd for C$13 million (RM39.14 million) cash.

KSD intends to use the sale proceeds to repay the bank loan that is secured against the hotel, as well as for other better investments in the event such investment opportunities become available.

Pre-tax profit from the sale was estimated at C$5.75 million. After the deduction of Canadian capital gains tax of C$1.2 million, the after-tax profit arising from the sale was about C$4.54 million or RM13.67 million.

The nine-storey, 201-room hotel was acquired in January 2000 for C$10.85 million. The 24-year-old hotel sits on freehold land measuring 7,122 square metres and has a built-up area of 13,777 sq m. The hotel had a net book value of C$7.25 million as at Dec 31, 2008.

KSD Enterprises is a wholly owned subsidiary of KSF Enterprises Sdn Bhd, which is in turn 50.01%-owned by Keck Seng. KSD’s principal business is the operation of hotels and conference centres.