Raymond Lum and David Lum – Lum Chang’s directors and controlling shareholders who together control 41% of the group via direct and indirect interests – also collectively hold 30% indirect interests in UKPI through Lum Chang Investments and Bevrian, respectively.
The group says the consideration was arrived at following arm’s length negotiations on a willing-buyer-willing-seller basis, based on the adjusted unaudited net asset value of the trust as at March 10.
It also takes into account the agreed value of the property at £55.2 million.
Part of the consideration will go towards the repayment of an existing Sterling denominated loan amounting to £29.9 million, which was secured against the property.
The consideration is subject to post-completion review and adjustments, which is expected to conclude in 2Q2020.
Lum Chang says the transaction allows the company to realise the value of the asset and to unlock capital for reinvestment.
The company expects to recognise an estimated post-tax net gain of £0.5 million from the divestment, after taking into account the transaction costs.
As at noon on Wednesday, shares in Lum Chang are trading 2.9% lower, or down 1 cent, at 34 cents.
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