KUALA LUMPUR (Dec 1): YLI Holdings Bhd is disposing of two parcels of freehold land in Penang to ZW Packaging Sdn Bhd for RM17.31 million in cash.

In a bourse filing, YLI said the two pieces of land have a combined size of 4.675 acres, both located in Seberang Perai Tengah. The proceeds from the disposal will be used to upgrade machinery, and to fund the working capital requirement, as well as repayment of bank borrowings.

The group noted that the lands are currently used as a storage yard for its pipes and fittings.

YLI is principally involved in the manufacturing and marketing of ductile iron, mild steel and high-density polyethylene (HDPE) pipes, fittings and other related products, the company’s website showed.

YLI said its wholly-owned subsidiary Yew Lean Foundry & Co Sdn Bhd had entered into a sale and purchase agreement with ZW Packaging for the planned land disposal.

ZW Packaging’s principal activities are in the business of manufacturing and dealing in packaging products, provision of transportation, haulage, logistics and mover services.

YLI’s share price was traded unchanged at 25.5 sen on Thursday (Dec 1), giving the group a market capitalisation of RM26 million.

Source: EdgeProp, 2 December 2022.