KLANG (Aug 3): KUB Malaysia Bhd is 'more likely' to dispose of its 1.05-acre land in Petaling Jaya, where the landmark A&W PJ Drive-In is situated, according to its president and group managing director Datuk Abdul Rahim Mohd Zin
At a press conference today, Abdul Rahim said this is in line with the group's overall business portfolio.
"We are talking to several prospective parties to possibly either dispose of, more likely to dispose of, or jointly develop the property. Because we are not in property development, if we get a better valuation for a disposal, we would probably sell it. We don't want to take development risk from the project," he said after the launching ceremony of two new liquefied petroleum gas (LPG) trucks.
Abdul Rahim also said so far, the indicative offers KUB Malaysia is getting for the land is still about RM38 million.
"We never had a firm intention to fully develop it ourselves, if we cannot get a good offer and we have to develop, we would probably develop it jointly with others," he said, adding that in the case of disposal, the group will also not seek to be the manager of the new property there.
Earlier today, KUB Malaysia's wholly-owned subsidiary KUB Gaz Sdn Bhd took delivery of the two LPG trucks from one of its main dealer MAPAC Group (M) Sdn Bhd.
Abdul Rahim with the growing demand of LPG in the domestic and commercial markets, particularly in the central region, these trucks are meant to ensure efficient delivery of LPG that would benefit consumers under its coverage.
"We would like to applaud MAPAC's initiative of customising these new trucks with our SOLAR GAS's logo and theme colour. This is in line with the group's rebranding efforts which we are currently implementing nationwide," he said.
"Not only will this increase the SOLAR GAS brand awareness among our consumers, but it will also further strengthen our position in the country's LPG market," he added.
To boost the group's gas cylinders distribution capacity and expand its market base, Abdul Rahim said KUB Malaysia is currently constructing a RM10.7 million satellite bottling plant located in Hulu Langat.
Abdul Rahim said the plant, which slated for completion by year-end, is strategically located within a high-density residential market which will enable the group to have better geographical reach to a currently underserved area.
This satellite plant is expected to produce an additional 2,000 metric tonnes (MT) LPG per month, in addition to the current capacity of 14,000 MT per month, whereby 10,000 MT is from its plant in Klang, and 4,000 MT is from the group's plant in Johor.
As at 11:30am today, KUB Malaysia's share price remained unchanged at 35 sen, with a market capitalisation of RM194.76 million.