KUALA LUMPUR: PLB Engineering Bhd
's wholly-owned subsidiary, PLB Land Sdn Bhd, is disposing of five parcels of vacant freehold land at Jarak Atas, Tasik Gelugor, in Penang for RM48mil to repay bank debts and improve its cash flow.
The group said it purchased the lands - which have a combined size of 807,157sqm - for RM25.48mil back in June 11, 2013. As at Aug 31, 2024, the lands held a net book value of RM30.38mil.
PLB expects to gain about RM12.88mil from the disposal, after deducting the investment cost and land related cost for the six months ended Feb 28, 2025, as well as estimated expenses and taxation.
PLB said in its bourse filing it plans to utilise the proceeds of the sale to repay bank borrowings of RM10mil and trade creditors and working capital of RM33.33mil.
Of the remaining proceeds, RM606,000 will be used to cover the estimated expenses of the proposed disposal, and RM4.07mil go to taxes.
The proposed disposal is expected to be completed in 2025.
