Top Creation Investments Limited Investment Exit (9775A)

TIDMTOPC

RNS Number : 9775A

Top Creation Investments Limited

26 February 2014

Top Creation Investments Limited

("Top Creation" or the "Company")

Investment Exit

The Company announces that it has decided to exit of the Company's Investment in Lot 129, Negeri Melaka ("Melaka Project") for approximately RM15.4m (the "Disposal").

The investment in the Melaka Project was originally for a consideration of RM14m (approximately GBP2.8m), as announced on 22 July 2011, and was originally expected to complete in November 2013. However, as previously announced, the Melaka Project has been delayed by construction and financing issues.

On 1 January 2014, the situation further deteriorated as changes to property legislation by the Malaysian government came into effect. These changes increased the minimum price of property that can be purchased by foreigners from RM 500,000 (US$157,282) to RM 1,000,000 (US$314,564).

The directors now believe that the Melaka Project will no longer produce a sufficient return on the Company's investment and that better opportunities exist. Therefore the board has decided that it is in the best interests of shareholders to exit the Company's investment in the Melaka Project.

The Company's investment in the Melaka Project has been exited at cost, for a cash consideration of RM15,379,362.65 (approximately GBP2.8m). The Company has made no profit or loss on the Melaka Project investment and there will therefore be no effect on the gross assets of the Company following the Disposal.

Following the Disposal, the Company will have cash of approximately RM15.4m (GBP2.8m) and the Company has been advised by its consultants that there are a number of potential investment opportunities in Kuala Lumpur and the Klang Valley, Malaysia, which the board will review in the near future.

Enquiries:

 
Top Creation Investments Limited 
Wong Yu Sun, Finance Director     Tel: 006012 2778972 
 
Daniel Stewart & Company plc 
Antony Legge                      Tel: 020 7776 6550

This information is provided by RNS

The company news service from the London Stock Exchange

END

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