Petaling Tin sells land for RM45.6mil to boost working capital

KUALA LUMPUR: Loss-making Petaling Tin Bhd (PTB) is selling five parcels of leasehold land in Ulu Selangor, Selangor, for RM45.59mil to improve its cashflow.

In a filing with Bursa Malaysia, the property developer said its wholly-owned subsidiary PTB Development Sdn Bhd signed two agreements on Tuesday to dispose of the land, measuring 116.11 acres, to Ringgit Muhibbah Sdn Bhd.

In one agreement, Asali Developments Sdn Bhd was also a signatory by virtue of it being a registered proprietor of the parcels as bare trustee for PTB Development’s benefit.

PTB’s original cost of investment in the five pieces of land was about RM15.5mil, and their net book value based on the PTB group’s statement for the financial year ended Dec 31, 2014, is RM15.65mil.

“Upon completion of the proposed disposal, the PTB group is expected to realise a net gain of disposal of RM28.98mil,” the company said.

PTB said the proposed disposal offered an opportunity for it to unlock the immediate value of the land and would also improve the PTB group’s cashflow through realisation of a portion of its land investment into cash.

The company said it would use RM44.62mil from the proceeds for working capital within 18 months.

The proposed disposal is expected to be completed within nine months from the date of the sale and purchase agreements.

PTB incurred a group net loss of RM6.07mil for the financial year ended Dec 31, 2014. It posted a net loss of RM3.86mil for the first nine months of this year.

PTB shares gained half a sen to close at 23.5 sen on Tuesday.