KUALA LUMPUR (April 30): Building materials trader Ipmuda Bhd is selling off its idle factory in Rawang Integrated Industrial Park to May Chemical Sdn Bhd for RM12 million.

In a filing with Bursa Malaysia today, Ipmuda said the factory is in the name of Roset-BLG Sdn Bhd, a wholly-owned subsidiary of Better Living Grand Sdn Bhd, which in turn is a wholly-owned subsidiary of the group.

Roset-BLG acquired the property for RM6.1 million in 2004, and the net book value as at Dec 31, 2016 was RM5.24 million. As a result, the estimated gain to Roset-BLG and Ipmuda on the disposal is RM6.09 million and RM7.55 million respectively.

Ipmuda said the factory has not been in use since January 2016 when Roset-BLG ceased its kitchen cabinetry systems manufacturing activities.

The group said the net proceeds from the disposal will be used as working capital, and thus will contribute positively to its net assets and earnings.

Shares of Ipmuda were last traded on April 25 at 81 sen, with a market capitalisation of RM58.34 million.