LBS Bina - increase of foreign shareholders

It expects foreign shareholding in the firm to increase after it declares a five-year tax-exempt special dividend from cash proceeds received via the sale of assets in China.

Foreign shareholders have been increasing their holding in LBS Bina over the past few months prior to Aug 213- from 3.5 per cent as at mid-June 2013 to about eight per cent as at mid-August 2013.

Following the completion of the asset sale, LBS Bina declared a tax exempt special dividend of eight sen per share this year. The dividend will be paid on October 18 2013.

There will be four more special dividend payments of at least six sen from next 2014 to 2017, as the firm receives more cash from the asset sale.

LBS Bina has received HK$500 million (RM206.45 million) in cash, 225.5 million new Zhuhai shares worth HK$300 million (RM123.87 million), and Promissory Notes for the deferred cash payment of HK$850 million (RM350.97 million).

The firm will adopt a policy to propose special dividend with a dividend payout based on six sen per ordinary share or up to 40 per cent of each tranche of receipt, whichever is lower, subject to the receipt of each tranche of the deferred cash payment.

LBS Bina will also adopt a policy to pay a minimum normal dividend based on 30 per cent of its new profit for each financial year, starting 2013.

LBS Bina has undergone a transformation since 2009. It is now building medium to high-end properties instead of focusing on low- and medium-cost houses. It is also venturing into new territories in Johor, Sabah and Pahang.