PETALING JAYA: Financially embattled Utusan Melayu (M) Bhd has proposed to sell its five-storey corner shop office in Petaling Jaya, Selangor for RM7mil to raise funds for working capital requirements.
The media company said the proposed disposal would provide an opportunity for the group to unlock the immediate value of the property, for which it incurred an original cost of investment of RM4.82mil in December 1995.
The proposed disposal is expected to result in a net gain of RM3.95mil for the group.
In its filings with Bursa Malaysia yesterday, Utusan said its wholly-owned subsidiary Mediamony Sdn Bhd had entered a conditional sale and purchase agreement with Eden Resources Sdn Bhd for the proposed disposal of the five-storey corner shop office, which is held under a leasehold title expiring on Dec 16, 2086.
The property is located at No 11, The Right Angle on Jalan 14/22, Petaling Jaya with an area measuring 514 sq m.
Utusan said the proposed disposal of the property was in the best interest of the group as it would enable the group to raise funds for the working capital requirements.
“The net proceeds from the proposed disposal were intended to be utilised partially to fund working capital requirements of the group to finance its day-to-day operations, including payment to creditors, such as suppliers and statutory obligations, administrative expenses, such as salaries and wages and other operating expenses, such as promotional activities,” it said.
The proposed disposal of the leasehold property came hot on the heels of the media company’s recently announced plan to dispose of its 4,715 sq m industrial leasehold land in Kuala Lumpur for RM18mil last month.