KUALA LUMPUR: Industronics Bhd
is disposing of 1,382 sq metres of freehold land in Kajang, Selangor to People and Global Sdn. Bhd. for RM7mil.
In a filing with Bursa Malaysia, the company said the land, which has a net book value of RM5.009mil, contains a four-storey office and a single-storey detached factory.
It was sold to Lauh Sau Wan and Wong Chee Cheong who are the two shareholders of People and Global, it said in a Bursa Malaysia announcement.
Its original cost of investment was RM216,210 in this piece of land.
Industries said it plans to put RM5mil of the monies from this disposal for investment to open a new sales gallery for luxury watches within two years of this sale.
It also plans to use RM656,000 from the asset sale for working capital within three months of the transaction and another RM1.344mil to pay for the estimated expenses for the proposed disposal.
"The estimated expenses consist of fees payable to the relevant authorities, professional fees, real properties gain tax and repair costs to make good of disposed property.
“If the actual expense incurred pursuant to the proposed disposal is higher than the amount budgeted, the deficit will be funded out of the portion allocated for proposed investment to open new sales gallery for luxury watches," it said.
