KUALA LUMPUR (June 26): Uchi Technologies Bhd is planning to dispose of its property in George Town, Penang, to Kao Yen-Ping, the son of substantial shareholder Kao De-Tsan also known as Ted Kao for RM9.51 million.

De-Tsan is a director of Uchi.   

In a filing with Bursa Malaysia today, Uchi said its wholly-owned subsidiary Uchi Optoelectronic (M) Sdn Bhd has entered into a sale and purchase agreement with Kao Yen-Ping to dispose of the property, which is a 1,694.77 sq m freehold land with a seven-year-old double-storey detached house.

It noted that the original cost of the property was RM7.17 million, which the company bought on Dec 1, 2011.

Uchi said the disposal of the property will enable the group to realise its capital gain and provide general working capital. The expected gain on disposal was noted to be RM2.1 million.

"There is no specific time frame for full utilisation of the sale proceeds as such proceeds are to be utilised as working capital and is on an on-going basis," it said.

Barring any unforeseen circumstances, Uchi said the disposal is expected to be completed by Sept 25.

Uchi’s share price dropped five sen or 1.8% to RM2.73 for a market capitalisation of RM1.22 billion.