PETALING JAYA: PLB Engineering Bhd
’s wholly owned subsidiary, PLB Land Sdn Bhd, has entered into a sale and purchase agreement (SPA) with Milenium Baru Sdn Bhd for the disposal of two vacant plots of land for RM26.21mil.
In a filling with Bursa Malaysia, PLB Engineering said the net proceeds from the disposal will be utilised for the repayment of bank borrowings amounting to RM10.38mil, while the remaining RM15.83mil is earmarked for working capital.
“It’s expected to be fully utilised within three months from the completion date,” it noted.
Following this, PLB expects its gearing to improve to 2.07 times from 2.33 times.
Independent valuer Lanserve (Penang) Sdn Bhd had appraised the land on Dec 14, 2020, at a market value of RM24mil, PLB noted.
Both the freehold plots of land for development use are located in Penang and have a combined size of about 104,851 sq ft.
It is noteworthy that the original cost of investment towards these two parcels of land was about RM8.38mil.
According to a net book value of RM15.06mil as of Aug 31, 2022, the disposal is expected to result in a net gain of RM10.76mil.
PLB said a deposit of RM2.62mil will be paid by Milenium Baru upon the execution of the SPA, while another payment of RM2.62mil will be paid within three months from date of the SPA.
“The balance sale consideration of RM20.97mil will be paid within six months from the date of the SPA,” the company added.
