KUALA LUMPUR (Oct 28): Building materials and machinery company Knusford Bhd is disposing of a commercial land in Ulu Langat, Selangor to electric, building and general contractors LKC Ventures Sdn Bhd for RM14.63 million cash.

In a filing on Friday (Oct 28), Knusford said its wholly-owned subsidiary D-Hill Sdn Bhd entered into a sale and purchase agreement with LKC Ventures for the disposal of the freehold land, which measures 6,630.33 square metres.

Knusford said the RM14.63 million disposal consideration was arrived at on a willing-buyer willing-seller basis after taking into consideration the audited book value of the land as at March 31, 2022, of RM2.42 million as well as the estimated gain on disposal of RM10.7 million.

The land was acquired by Knusford in September 1996, at an original cost of investment of RM2.415 million.

Knusford said the disposal will allow the group to immediately unlock the value and monetise the cost incurred on the land, while also simultaneously enhancing the group’s cash flow.

“The proceeds from the proposed disposal could fund the group’s operations in the form of working capital requirement,” the company added.

LKC Ventures is 94%-controlled by Datuk Lim Kim Chong, while the remaining 6% is owned by Hong Wai Lin.

Both Lim and Hong are directors of LKC Ventures. They are not linked to any directors or major shareholders of Knusford and D-Hill.

Knusford said that barring any unforeseen circumstances, the proposed disposal is expected to be completed by the end of the first quarter of 2023.

Shares of Knusford ended unchanged at 51 sen, giving the company a market capitalisation of RM50.82 million.

Source: Edge Prop, 29 October 2022