Paramount to monetise assets when only needed
Ho Chung Teng | 04 Aug 2017 00:30
Paramount Corp Bhd’s move to monetise its education assets is seen as positive for the company as it can unlock value and pare down its debts.

However, many are surprised that the property and education group is only disposing its private and international schools – Sekolah Sri KDU and Sri KDU International School (Sri KDU Campus) in Kota Damansara – for RM165 mil and not its other education assets as well.

As of Dec 31, last year, the Sri KDU Campus had a net book value of RM87.03 mil while the original cost of investment of RM102.54 mil. The net gain from the disposal exercise is RM72.9 mil.

Paramount estimated that its KDU education assets could be worth between RM600 mil and RM700 mil, and net gains to be unlocked is expected to range from RM232-RM332 mil.

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