KUALA LUMPUR: Knusford Bhd
has agreed to dispose of a provisional 25,625.48 sqm of freehold land and buildings in Klang, Selangor, to Emerald Plan Sdn Bhd for RM28mil cash.
The group expects to make a net gain of RM11.63mil in the related party transaction, after deducting estimated taxes and expenses.
"The funds raised from the proposed disposal will allow Knusford to pare down its bank borrowings and replenish working capital for its operations," it said in a filing with Bursa Malaysia.
Accoding to the filing, the buildings on the land include a one-and-a-half storey detached factory, three-storey office building, single-storey guard house and a refuse chamber.
The land, which is categorised for industrial use, is currently tenanted by BJ Services (M) Sdn Bhd for a contract period of Dec 1, 2022, to Nov 20, 2025.
The land was purchased for RM15.49mil on June 20, 2007, and subsequently incurred incidental and upgrading costs of RM670,000.
Knusford said the land was last audited for a net book value of RM14.69mil.
