KUCHING: PMB Technology Bhd group is set to dispose of a piece of land with approved development project in Kuala Lumpur for RM37 million.
Its wholly-owned subsidiary PMB Land (Sg Besi) Sdn Bhd has entered into a sale and purchase agreement (SPA) with Faithview Resources Sdn Bhd for the disposal of the land in Mukim Petaling, KL measuring 6,658 square metres.
Faithview Resources is principally engaged in other retail sale in non-specialised stores, non-residential buildings, and activities of holding companies.
PMB Land is involved in property development as well as manufacturing, trading and distribution of industrialised building systems (IBS).
Press Metal Aluminium Holdings Bhd, which owns aluminium smelting plants in Samalaju Industrial Park,Bintulu and Mukah, is the biggest shareholders of PMB Technology with a stake of 31.65 per cent.
The said land has been approved for the development of one block of studio apartments and serviced apartments, totalling 27 storeys, comprising 25 storeys of studio apartments (146 units) and serviced apartment (336 units), one storey of mechanical and electrical service, one storey of public facilities, on top of seven-storey podium car parks and one guard house, PMB Technology said in a filing with Bursa Malaysia.
PMB Land’s original cost of investment on the land was RM30 million, and the land is currently charged to Al Rajhi Banking & Investment Corporation (Malaysia) Bhd for a bridging loan.
The disposal of the land is expected to generate an estimated one-off gain of RM1.579 million.
“The proposed disposal forms part of the company’s direction to streamline the operations for the group by focussing on its core business and optimise the utilisation of proceeds as working capital for its day-to-day operating activities,” said PMB Technology.
According to PMB Technology, the group complements the activities of its corporate shareholder, Press Metal, which is South East Asia’s biggest aluminium smelter.
The group’s businesses and operations are related to aluminium and are classified into (1) manufacturing and trading segment, and (2) construction and fabrication segment.
PMB Technology owns and operates metallic silicon manufacturing facilities with annual capacity of 72,000 tonnes in Samalaju Industrial Park.
From the proceeds of the land disposal, PMB Technology plans to utilise RM21 million for the settlement of bridging loan (within six months),RM14.45 million for group’s working capital (12 months) and 1.55 million for the estimated expenses related to the disposal expected to be completed within three to five months from the date of the SPA on Aug 17, 2022.
