KUALA LUMPUR: Pantech Global Bhd's wholly-owned subsidiary, Pantech Steel Industries Sdn Bhd, has entered into a sale and purchase agreement with Veltrix Land Sdn Bhd for the sale of a parcel of freehold land at a total consideration of RM31.73 million.
The group said in a Bursa Malaysia filing that the land in Klang, Selangor, measures approximately 435,874 square feet (sq ft).
"The proposed disposal is undertaken pursuant to the group's revised development plans for its Klang operations.
"The property was originally intended for the development of Klang Factory 2. Following the group's review of the development plan and the prolonged timeframe associated with the necessary planning and development requirements for the property, the group has decided to dispose of the property," it said.
Pantech Global added that the proposed disposal will enable the group to recover the capital outlay deployed for the property and redeploy the relevant funds towards the group's ongoing development and operational requirements.
In addition, the proposed disposal will release the capital currently tied up in the property and allow the group to deploy its financial resources more efficiently.
"The proposed disposal is expected to contribute positively to the cash flow position of the Pantech Global Group.
"The actual gain or loss arising from the proposed disposal will depend on the net carrying amount of the property and the final costs associated with the completion of the proposed disposal," it said.
Barring any unforeseen circumstances and subject to all relevant approvals being obtained, the proposed disposal is expected to be completed by the first quarter of 2027.
Pantech Global, Veltrix Land Sdn Bhd, corporate
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