KUCHING: PMB Technology Bhd’s wholly-owned subsidiary PMB Carbon Sdn Bhd is selling a piece of leasehold land in Klang, Selangor for RM36.59 million.
PMB Carbon has entered into a sale and purchase agreement (SPA) with Ong Saut Mee for the disposal of the land measuring about 56,656 sq m. The 99-year leasehold land will expire on March 30, 2097.
“The property is currently charged to Public Bank as security for a loan granted to PMB Carbon. The original cost of investment in the land is RM4,879,000 on Sept 26, 2008,” PMB Technology said in a filing with Bursa Malaysia.
PMB Technology, which is an associate of integrated aluminium smelter Press Metal Aluminium Holdings Bhd, is principally engaged in investment holding activities, manufacturing and marketing of carbon based products as well as trading, distribution and fabrication of aluminium related products.
According to PMB Technology, the sales consideration of RM36.59 million was arrived at on a “willing buyer willing seller” basis after taking into consideration the professional valuation carried out by the independent registered valuer, Henry Butcher Malaysia Sdn Bhd.
“The proposed disposal will enable PMB Technology group to unlock capital resources from being tied up in long term assets and realise the property at fair market value whilst enhancing the group’s liquidity and strengthening its financial position,” said the company.
The proposed disposal of the land is expected to generate an estimated on-off gain of about RM25.748 million to the group after taking into account the estimated expenses in relation to the proposal disposal.
On the payment of the sale consideration, PMB Technology said an earnest deposit of RM731,000 was paid prior to the execution of the SPA. Balance deposit of RM2.927 million paid upon the execution of the SPA while the balance sale consideration of RM32.931 million to be paid within three months from the unconditional date as defined in the SPA.
In the event the purchaser is unable to pay the balance sale consideration on or before the expiry of the payment date, the vendor agrees to grant an extension of one month provided the purchaser shall pay to the vendor interest on the balance sale consideration or any part thereof unpaid at a rate of eight per cent per annum calculated on a daily basis from the day next after the expiry of the payment date to the date of full payment of the balance sale consideration.
PMB Technology said about RM33.1 million of the proceeds from the disposal will be utilised for the group’s working capital within 12 months.
The estimated expenses in relation to the proposed disposal (including the real property gains tax) may be payable by the vendor based on the prevailing rates under the provisions Real Property Gains Tax Act, 1976. The company will set aside RM3.51 million for this.
