MEDIA CHINESE (00685.HK): Disposal of a Property in Canada for CAD 6.85 Million, Expected Una audited Gain of Approximately CAD 5.26 Million
NewTimeSpace News: On September 3, 2026, MEDIA CHINESE INTERNATIONAL LIMITED (stock code: 00685) announced that its indirect wholly-owned subsidiary, the vendor Ming Pao Holdings (Canada) Limited, had entered into a sale and purchase agreement with Da Xing Investment Ltd., an independent third party, on September 2, 2026 (Canadian time) for the conditional disposal of a property in Richmond, British Columbia, Canada at a consideration of CAD 6.85 million (approximately USD 4.92 million or MYR 19.88 million). The property, comprising a parcel of land with a two-storey industrial building and acquired in 1993, was previously used as the group's office and printing plant for its Canadian media business and has remained vacant since the group ceased that business on February 1, 2026; its net book value was CAD 1.286 million (approximately USD 0.92 million) as of both March 31, 2026 and July 31, 2026.
As one or more of the applicable percentage ratios exceeded 5% but all remained below 25%, entering into the sale and purchase agreement constitutes a discloseable transaction under the Listing Rules and is subject to the notification and announcement requirements under Chapter 14. As the applicable percentage ratio for the disposal did not exceed 5%, the company is not required to announce the disposal to Bursa Malaysia, and this announcement is made voluntarily pursuant to paragraph 10.05(2) of the Bursa Malaysia Listing Requirements. The disposal does not require approval from shareholders or any regulatory authority; completion is expected to take place on December 1, 2026, with vacant possession of the property to be delivered to the purchaser on December 2, 2026.
The disposal is expected to record an unaudited gain of approximately CAD 5.26 million (approximately USD 3.78 million or MYR 15.28 million), representing the difference between the consideration and the net book value of the property before deducting any expenses and tax, which will increase the group's consolidated net assets by the same amount but is not considered significant. After deducting related costs and expenses (before tax), the net proceeds are estimated at approximately CAD 6.55 million (approximately USD 4.70 million or MYR 19.01 million), which are planned to be used as general working capital of the group within 12 months from the completion date.
The directors consider that, as the group has ceased its Canadian media business and the property is no longer necessary for that business, the disposal provides the group with an opportunity to realize the value of the property and redeploy the proceeds to its other businesses and operational needs, with the terms of the sale and purchase agreement entered into on normal commercial terms, fair and reasonable, and in the interests of the company and its shareholders as a whole.
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