KUALA LUMPUR (June 6): AE Multi Holdings Bhd has proposed to dispose of a property in Sungai Petani, Kedah, comprising a single-storey office, warehouse, factory building and ancillary building for RM10 million.

The group said the sale will enable it to repay outstanding  bank debts of RM2 million, upgrade its treatment plant in Thailand for RM2 million and use RM5.94 million to finance its working capital.

The vendor of the property, located on a piece of leasehold industrial land measuring 23,471 sq metres, is Jyoto Works (M) Sdn Bhd.

Jyoto Works, which manufactures metal speaker parts, is currently renting the property for RM55,000 per month.

In a filing with Bursa Malaysia, AE Multi said the disposal is expected to result in an estimated gain on disposal of RM73,000.

The disposal consideration was arrived at on a willing-buyer willing-seller basis, the company said, taking into consideration the indicative market valuation of RM7.75 million and RM7.9 million by JB Jurunilai Bersekutu (Kedah) Sdn Bhd and  Raine & Horne International Zaiki + Partners Sdn Bhd respectively.

Barring any unforeseen circumstances, the company expects the disposal to be completed by November 2018.

Shares in AE Multi closed unchanged at 15 sen, giving it a market capitalization of RM46.41 million.