Dutch Lady mulls sale of Petaling Jaya factory land

-A +A

KUALA LUMPUR (Sept 9): Dutch Lady Milk Industries Bhd is assessing the prospects of a potential sale of its current factory land in Petaling Jaya.

The land comprises factory buildings, office complex and warehouse, and carries a net book value of RM28.4 million or 0.44 sen per share as at end last year, according to its latest annual report.

The assessment came as the group had received shareholders’ approval last July for the purchase of land in Bandar Enstek, Negeri Sembilan to construct its new manufacturing facilities. It was also brought about considering the current economic climate which resulted from the Covid-19 pandemic, Dutch Lady said in a stock exchange filing today.

“As part of the assessment, an independent real estate agent has been appointed to act on behalf of Dutch Lady to seek offers for the lands from the open market by way of a public tender after the date of this announcement,” it said.

Final decisions on the land will only be made by the board after the assessment of the various scenarios is completed, it added.

The land, located under Lot 78, Lot 79 and Lot 48 in Jalan Prof Khoo Kay Kim, measures 432,617 sq ft or 9.93 acres with a leasehold expiring in 2059.

Dutch Lady’s Bandar Enstek facilities will be on a bigger plot of 32.59 acres. It was acquired for RM57 million. 

However, Dutch Lady said it is too preliminary to ascertain when construction works will commence since multiple scenarios are being evaluated.

Dutch Lady shares closed unchanged at RM39.22 today, giving the group a market capitalisation of RM2.51 billion. Year to date, the stock is down 20%.

Tan Choe Choe