KUALA LUMPUR (Dec 19): Perak Corp Bhd (PCB) has entered into a sale and purchase agreement (SPA) with its wholly-owned subsidiary Perak Agro Properties Sdn Bhd (PAP) to dispose of a parcel of land in Ipoh, Perak.
 
According to a filing with Bursa Malaysia, the land, together with the existing building, Wisma Wan Mohamed, will be sold to PAP for RM14.2 million.
 
PCB said the disposal would result in a net gain of about RM3 million. The company also expects its net assets per share to increase by about three sen post disposal.
 
PCB intends to use the proceeds from the disposal to finance its working capital requirements.
 
“The proposed disposal provides an opportunity for PCB to unlock the capital resources of the property and to realise the property at a fair market value whilst enhancing the group’s working capital,” it said.
 
The company recently withdrew its proposed selective capital reduction and repayment that paved way for the privatisation of the company by the Perak state goverment.
 
The company expects the disposal to have no material effect on its earnings for the financial year ending Dec 31, 2014.
 
PCB expects the disposal to be completed within nine months from the date of the SPA, with an extension of 30 days if the sale if not completed within the period.
 
PCB rose 12 sen or 5.85% to RM2.17, bringing its market capitalisation to RM216 million.