AwanTec sells office building to Serba Dinamik as part of rationalisation plan

AwanTec sells office building to Serba Dinamik as part of rationalisation plan
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KUALA LUMPUR (Feb 8): AwanBiru Technology Bhd (AwanTec) is selling an eight-storey office building at Star Central @ Cyberjaya, together with attached fixtures and fittings, to Serba Dinamik Group Bhd for RM24.2 million.

AwanTec, formerly known as Prestariang Bhd, said the disposal is part of its rationalisation plan to divest its non-core assets to improve its financial position and cashflow.

“This will allow the group to reduce its borrowing and provide additional cash derived from the sales proceeds and cashflow savings from the loan repayment, which will be channeled towards the group’s business operations,” AwanTec said in a filing with Bursa Malaysia.

The settlement of bank loan for the property will provide cashflow savings of RM3.4 million a year, while the  disposal will also enable the group to have a yearly cost saving of RM960,000, the group said.

Awantec said the disposal is expected to result in a loss on disposal of RM680,000.

As at June 30, 2020, the property had a net carrying value of RM23.78 million and a net book value of fixtures and fittings of RM998,000, while the estimated cost of transaction is RM100,000.

Shares of Awantec closed 2.5 sen or 2.79% higher at 92 sen today, valuing it at RM725.99 million. Over the past year, the counter jumped by 170% from 34 sen.

S Kanagaraju