KUALA LUMPUR (Oct 8): KPS Consortium Bhd's wholly-owned unit Hai Ming Industries Sdn Bhd has entered into a sale and purchase agreement with Uptown Promenade Sdn Bhd to dispose of a parcel of freehold industrial land for a total of RM19 million.

The disposal is deemed substantial, given KPS’ market capitalisation of RM74.65 million at its closing price of 50 sen today.

In a filing with Bursa Malaysia this evening, KPS said the land is located in Klang and measures about 17,704 square metres, with a block of factory building and a three storey office building already erected on it.

The property is currently occupied by another of KPS' subsidiaries, I’Kranji Industries Sdn Bhd, for manufacturing printed laminated plywood.

Meanwhile, I’Kranji had also entered into a sale of machinery agreement with Rhong Khen Industries Sdn Bhd to dispose of all the machinery attached to the property, for a total of RM3 million.

Both Uptown Promenade and Rhong Ken Industries are wholly-owned subsidiaries of Latitude Tree Holdings Bhd.

"Upon the disposal of the property, I’Kranji will continue its operations at an existing factory of the KPS Consortium group, located at Tempat Sementah, Klang," it said in its filing.

KPS said it would realise a gain of about RM7.1 million from the proposed disposals, and the proceeds would be put towards working capital for the group.

The proposed disposals are expected to be completed within three months.