Sapura Industrial disposes of Melaka land for RM10.5mil


PETALING JAYA: Sapura Industrial Bhd is proposing to dispose of a piece of vacant leasehold industrial land measuring 2.163 hectares in Ayer Keroh, Melaka to Loongsen Plastics (M) Sdn Bhd for RM10.48mil.

In a filing with Bursa Malaysia, the automotive components manufacturer said the proposed disposal provides an opportunity for the company to realise the capital appreciation of the property.

“The property was initially acquired by the company to expand its plant in Melaka.

“Having held the asset as an investment for 25 years and having considered the need for an expansion of plant in other areas which are in closer proximity to the company's or its subsidiaries' customers, the board believes that the proposed disposal is timely, allowing the company to unlock the value of its noncore assets and convert them into liquid funds for more productive operational use and other expansion opportunities.”

Barring unforeseen circumstances, it said the transaction is expected to be completed by the first half of the company's financial year ending 2028.

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