KUALA LUMPUR (Oct 4): YLI Holdings Bhd’s subsidiary, Laksana Wibawa Sdn Bhd, has accepted and received RM97.84 million in compensation for its land in Hulu Serendah, Selangor that was compulsorily acquired for a rail project.

In a local bourse filing on Wednesday, the steel manufacturer said the land was acquired by Malaysian Rail Link Sdn Bhd, an agency under the Ministry of Finance Inc (MOF Inc), which has been appointed as the asset and project owner of East Coast Rail Link (ECRL).

The group said the RM97.84 million compensation includes compensation for severance damages.

Following the disposal, YLI is expected to gain approximately RM62.17 million and it will utilise most of the proceeds for expenses and repayment of its borrowings, as well as redemption of Redeemable Convertible Preference Shares (RCPS).

“The compulsory disposal arose as a result of receipt from the Land Administrator of the notice to take possession of the Land under Section 18 of the Land Acquisition Act 1960,” it said.

At the time of writing on Wednesday, shares in YLI were 6.5 sen or 20.97% higher at 37.5 sen, which translates into a  market capitalisation of RM39.12 million.