KUALA LUMPUR: Ta Win Holdings Bhd
via its wholly-owned subsidiary Tan Win Industries (M) Sdn Bhd has sold a 16,187sqm tract of industrial land and factory in Klang, Selangor, to Metal Recovery Industries Sdn Bhd for RM44.5mil.
In a filing with Bursa Malaysia, the group said it had ceased operations at the property in November 2024 due to high operating costs and a failure to break even.
While the land was valued at RM47.7mil, it said the disposal consideration was the highest offer received despite efforts to engage with multiple real estate agents.
As the property is specifically tailored to Ta Win's copper wire and rod manufacturing, it is less appealing to buyers outside of the metal smelting industry.
Ta Win added that the proceeds of the disposal will be used to settle a loan of RM18.72mil charged on the property, which incurs an annual interest cost of RM991,842.73.
The remainder of the proceeds will go towards working capital ad covering estimates expenses related to the proposed disposal.
Based on the book value of the property, Ta Win said the proposed disposal, expected to be completed in the second half of 2025, will result in a net loss of approximately RM3.6mil after deducting estimated incidental costs.
