Friday 29 Mar 2024
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KUALA LUMPUR (Nov 9): Textile and garment retailer and trader Yong Tai Bhd is disposing of a parcel of land measuring 21,775 sq ft in Batu Pahat, Johor, to Teo Hock Chuan for RM1.3 million.

The piece of leasehold land comes with one unit of single-storey warehouse.

In a filing with Bursa Malaysia today, Yong Tai said its wholly-owned subsidiary Syarikat Koon Fuat Industries Sdn Bhd has signed a conditional sale and purchase agreement with Teo for the proposed disposal.

"The disposal consideration was arrived at on a 'willing buyer willing seller' basis after taking into account the market value of the property of RM1.3 million as appraised by [a] valuer on Sept 22," said Yong Tai.

"The disposal consideration is justified in view of the market value of the property as well as the audited net book value of the property of RM762,000 as at June 30," it added.

Out of the total proceeds from the sale, Yong Tai said RM700,000 will be used to repay existing bank borrowings to discharge the property, RM540,000 for working capital and RM60,000 for estimated expenses for the disposal.

It said the disposal offers an opportunity to unlock the value of its investment, and that the exercise is in line with its strategy to focus on its property development segment.

"In addition, the proposed disposal is expected to improve the group's financial position, including the strengthening of the group's cash position from the proceeds of the proposed disposal.

"The group's pre-tax earnings is also expected to improve as a result of the recognition of gain on the proposed disposal of approximately RM478,000," said Yong Tai.

Yong Tai shares rose 1.5 sen or 2.03% to close at 75.5 sen today, bringing its market capitalisation to RM118.7 million.

(Note: The Edge Research's fundamental score reflects a company's profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)

 

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