Guoco Land reports 55pc crash in profit
Guoco Land - Guoco Group's property investment and development arm - is seeking to raise $1.36 billion from a proposed rights issue to finance a property acquisition.
The company yesterday reported a 55 per cent plunge in attributable profit to $47.64 million for the year to March.
The proceeds of the rights issue are to be used to finance the purchase of six floors of an office and retail development at the corner of Jubilee Street and Queen's Road Central from the Land Development Corporation.
The rights shares are priced at $9 each, a 21.1 per cent discount to yesterday's closing price of $11.40.
Guoco Land was Lap Heng Co before it was bought, restructured and renamed.
Turnover rose 27.6 per cent to $43.6 million, while operating profit after exceptional items dropped 59.37 per cent to $48.89 million.
Earnings per share dropped 61.17 per cent to 73 cents from $1.88 in the previous year. No dividend will be paid.
Guoco Land has acquired three floors of Wu Chung House and nine floors plus car parking spaces at Overseas Trust Bank Building from Dao Heng Bank Group.
