KUALA LUMPUR - Solid Automotive Bhd will be disposing of land in Johor for RM48.00 million.
In a filing with Bursa Malaysia today, Solid Automotive said its wholly-owned subsidiary, Solid Autotech Sdn Bhd, has entered into a conditional sale and purchase agreement with Ferrotec Power Semiconductor Malaysia Sdn Bhd for the disposal of 4.04 hectares of leasehold land in Johor Bahru.
Solid Automotive is involved in the trading and distribution of automotive parts and components for passenger and commercial vehicles in Malaysia and Singapore,
"The proposed disposal provides an opportunity for the group to realise and unlock the value of its investment in the subject property at the disposal consideration, which represents a premium of RM5.00 million or approximately 11.63 per cent to the market value of the subject property of RM43.00 million ascribed by the valuer.
"Further, the group is expected to realise a pro forma net gain from the proposed disposal of approximately RM34.23 million,” it said.
The group is expected to raise cash proceeds amounting to approximately RM48.00 million pursuant to the proposed disposal.
The proceeds are envisaged to be utilised for business/investment opportunities (RM20.50 million), capital expenditure (RM20.50 million), working capital (RM4.20 million) and estimated expenses in relation to the proposed disposal (RM2.80 million).
The proposed disposal is expected to be completed by the first quarter of 2024 and is expected to contribute positively to the earnings and earnings per share of the group for the financial year 2024. - BERNAMA