KUALA LUMPUR (Nov 15): Umno-controlled Utusan Melayu (M) Bhd is planning to sell a leasehold industrial plot located on Jalan Tiga off Jalan Chan Sow Lin here for RM18 million to raise working capital for the group.

In a stock exchange filing, the loss-making media group said it has inked a conditional sale and purchase agreement with local private company Strong Skyhutch Sdn Bhd for the proposed disposal, which is expected to bring in a net gain of about RM16.9 million for the group.

The land, which has 60 years left to its lease, measures 4,715 sq metres and has a market value of RM17.8 million as at March 19 this year, according to a valuation by W.M. Malik & Kamaruzzaman. The plot's audited net book value was RM196,174 as at end-2017. Its original cost of investment was RM813,191, incurred in end-1979.

Net proceeds from the proposed disposal will be used partially to fund working capital requirements of the group to finance its day-to-day operations, including payment to creditors, as well as administrative expenses like wages. "The actual utilisation has not been determined at this juncture and may differ at the time of utilisation," Utusan said.

Utusan expects the proposed disposal to be completed by June next year.

The group's shares rose half a sen to settle at 14.5 sen, for a market capitalisation of RM16.07 million. In the past 12 months, the stock has declined over 61%.