PETALING JAYA: Garment manufacturer Magni-Tech Industries Bhd is disposing of a vacant piece of industrial land with a factory building in Penang for RM22mil.
In a filing with Bursa Malaysia, Magni-Tech said its wholly-owned subsidiary, South Island Garment Sdn Bhd, had entered into a sale and purchase agreement with Hallmark Equity Sdn Bhd for the disposal of the land.
“The proposed disposal is to unlock and realise the value of the said property which is neither used nor generating any income. The board has considered that the market value of the property has appreciated since its acquisition during the financial year ended April 30,1990.
“With the price of RM22mil, Magni Group is in a position to realise the gain in value.”
Magni-Tech, which is engaged in both the manufacture and sales of garments, said it would be in a stronger cash position to fund its future business plans and to undertake new and suitable investment opportunities.
According to the company, the 7.7537 acres land has a single-storey detached factory and a double-storey office section in front, a single-storey warehouse, a canteen, a guardhouse, a car shed, a bicycle/motorcycle shed and a pump house.
“The proposed disposal will not have any effect on the issued and paid-up capital of Magni-Tech and the direct and/or indirect shareholdings of substantial shareholders’ of Magni-Tech, as it does not involve any issuance of new ordinary shares of Magni-Tech.
“The disposal is expected to be completed within four months from the date of the sale and purchase agreement, if the purchaser does not opt for the two-months extension, ” it said.
Did you find this article insightful?
100% readers found this article insightful