PETALING JAYA: Yi-Lai Bhd is expected to make a gain of RM10mil from its proposed disposal of a piece of leasehold land in Petaling Jaya, Selangor.
In its filing with Bursa Malaysia, the tiles distributor said its wholly-owned subsidiary Yi-Lai Industry Bhd (YLIB) had proposed to sell the 5,772.3 square metre land for a total consideration of RM15mil to Glass & Plastic Packaging Sdn Bhd.
“The disposal proceeds would be utilised to shore-up the working capital of the group’s existing businesses, especially if the Covid-19 pandemic prolongs globally, and/or to secure any new suitable investment opportunities that may arise during the recovery phase of the Covid-19 pandemic, ” Yi-Lai said.
“The rationale for the proposed disposal is to unlock the value of YLIB’s landed assets and raise funds to meet the operational and investment needs of the group, ” it added.
Yi-Lai said the proposed disposal was expected to contribute a gain of approximately RM10mil to the group for the financial year ending Dec 31,2020.
The proposed disposal was not expected to have any material effect on the group’s net assets per share and gearing, it added.
Yi-Lai’s shares rose 1.5 sen, or 1.72%, to close at 88.5 sen yesterday.
Did you find this article insightful?
100% readers found this article insightful