Boustead told Bursa Malaysia today that the estimated gain from the disposal of the 6.6 acres of land was about RM54.1mil.
"The proposed disposal also allows Boustead to strengthen its liquidity and cash flow position by raising total net cash proceeds of approximately RM213.8mil (net of estimated expenses), which will be utilised for repayment of bank borrowings and working capital," it said.
Meanwhile, in a separate announcement, Boustead said it has entered into a memorandum of understanding (MoU) with one of the largest commercial algae plantation owner and cultivator in the world - Next Generation Oil Sdn Bhd.
The MoU, Boustead said, will pave the way for the group to monetise its current land assets through higher yield products.
"Next Gen has the capacity and knowledge to scale up the plantation to produce Crude Algae Oil and has ready markets for the uptake of the Crude Algae Oil produced by Next Gen," Boustead said.
"Having cultivated a new plantation method with a potential of high yielding results and returns from their plantations, Next Gen is exploring opportunities to increase the plantation to large scale plantation within Malaysia," it added.