KUALA LUMPUR: ACE Market-listed Asdion Bhd is selling a six-storey office and factory building at Bandar Sri Damansara here for RM9.2 million in cash.

In a filing with Bursa Malaysia today, Asdion said it has signed a sale and purchase agreement with Environmental Science (M) Sdn Bhd (ESSB) to sell the 11-year-old freehold property that has been vacated since September this year.

The proposed selling price is two-and-a-half times above Asdion's original acquisition cost of RM3.57 million in April 2006.

The property now carries a market value of RM8.94 million, based on the valuation undertaken by independent firm Raine & Horne International Zaki + Partners Sdn Bhd.

It also has a net book value of about RM9.06 million as at March 31, 2014.

“The proposed disposal allows us to unlock the value of property, which is currently vacant, by disposing it above market value,” said Asdion.

Out of the total disposal proceeds, Asdion said it plans to use RM4 million to fund future property development projects, RM1.5 million for acquisition of assets and businesses, RM1.34 million to repay bank borrowing, RM1.66 million for working capital, while the remaining RM700,000 for estimated expenses on the disposal.

The buyer, ESSB, is a local incorporated company that involved in consultants for environmental management and environmental assessment, auditing, waste management and recycling activities. ESBB is co-owned by three individuals, namely Zulkifli Amhad, Choo Bon Lian and Soo Ee Wah.

The proposed disposal is subject to shareholders’ approval at an extraordinary general meeting to be convened later. It is expected to be completed in the second quarter 2015.

Shares of Asdion was untraded at 35 sen today, bringing a market capitalisation of RM39.5 million.