KUALA LUMPUR: WTK Holdings Bhd
has proposed to dispose of three industrial leasehold properties in Seberang Perai Tengah, Penang, to NationGate System Sdn Bhd for RM38mil cash.
In a filing with Bursa Malaysia, WTK said its wholly-owned subsidiary Loytape Industries Sdn Bhd entered into a sale and purchase agreement with NationGate System for the disposal.
The three properties, with a combined land area of 265,003 sq ft, comprise two parcels with factory, office and ancillary buildings and one parcel of vacant land in Seberang Perai Tengah, Pulau Pinang.
NationGate System is involved in the manufacture and design of electronic components as well as warehousing services. Its shareholders include NationGate Solution (M) Sdn Bhd and Nationgate Holdings Bhd.
WTK said the RM38mil disposal consideration represents a 15.5% premium to the properties’ combined market value of RM32.9mil.
The disposal is expected to result in an estimated net pro forma gain of RM30.46mil after taking into account the properties’ audited net carrying amount and estimated real property gains tax.
Of the proceeds, RM33.92mil is earmarked for working capital, RM2.58mil for real property gains tax and RM1.5mil for expenses related to the disposal.
WTK said the disposal forms part of its strategy to optimise and rebalance its asset portfolio following a fire at its Seberang Perai manufacturing facility in early 2025.
The group is shifting its tapes business towards a leaner, asset-light model, moving away from manufacturing to focus on converting and distribution activities. Its tapes operations will be relocated to a smaller facility.
WTK said the transaction would also allow it to monetise the properties, improve liquidity and deploy capital into higher-growth opportunities across its core businesses.
The disposal is expected to be completed in the second quarter of 2027, barring unforeseen circumstances and subject to all required approvals.
