KUALA LUMPUR (March 1): Renewable energy player Pekat Group Bhd is selling an industrial freehold land, measuring 12,813.89 sq m, for RM21 million cash, to realise the value of the unused property, with proceeds from the sale to be used for working capital.

The group’s wholly owned Pekat Teknologi Sdn Bhd had, on Feb 29, inked an unconditional sale and purchase deal with Titan Equity Sdn Bhd for the proposed disposal, Pekat’s bourse filing showed.

The proposed disposal is expected to net the group a gain of about RM1.82 million, based on the net book value of the freehold plot of RM17.82 million as of end-2023, after deducting estimated expenses for the sale and an estimated real property gains tax of RM630,000.

Besides working capital, it will use the proceeds to repay the land’s financing. The proposed disposal is expected to be completed by Sept 1, 2024.

The group made a net profit of RM13.69 million for its financial year 2023 ended Dec 31, 36% more than the RM10.04 million it made for FY2022, as revenue grew 27% to RM227.61 million from RM179.23 million, largely as its solar division’s topline grew, as it undertook more commercial, industrial and residential projects.

Pekat Group’s shares closed unchanged at 43 sen on Friday, giving it a market capitalisation of RM274.18 million.