KUALA LUMPUR, July 7 — Kumpulan Perangsang Selangor Bhd's (KPS) indirect wholly-owned subsidiary, Toyoplus Manufacturing (Malaysia) Sdn Bhd (TMM), is selling three pieces of leasehold land in Plentong, Johor Bahru, which come with factories, for RM22.5 million.
The disposal to Wiley Development Sdn Bhd would raise about RM20.3 million in net cash proceeds, of which RM16 million would be used by TMM to part-finance its expansion into Vietnam and the rest as the group’s working capital, KPS said.
“The disposal will enable the KPS group to monetise its unutilised assets and generate cash to be channelled for other purposes including to fund planned capital expenditures in line with the KPS group’s business plan,” it said in a filing with Bursa Malaysia today.
KPS, which is majority-owned by the Selangor government, said the disposal also offered an opportunity for TMM to focus on its core business, which is manufacturing, without needing to allocate its resources for maintenance of the unutilised properties.
TMM is a plastics injection moulding provider which has seven manufacturing plants in Malaysia, Vietnam, China and Indonesia, according to KPS’ latest annual report.
The disposal, targeted to be completed by the fourth quarter of this year, is expected to result in a net gain of RM12.8 million arising from the difference between the total disposal price and the net book value of the properties after deducting the estimated real property gains tax, corporate income tax payable, legal fees and other costs.
— Bernama
