KUALA LUMPUR (Aug 1): Lay Hong Bhd plans to dispose of its 34-acre land in Ijok, Kuala Selangor, to Kejora Sdn Bhd (JKSB) for RM27.60 million, to raise funds to pare down its borrowings.

In a filing with Bursa Malaysia, Lay Hong said it has signed a Memorandum of Understanding (MoU) with JKSB for the disposal.

The poultry and eggs dealer had its long- and short-term borrowings stand at approximately RM230.52 million as at March 31, 2018.

Lay Hong said it shall provide JKSB with a limited power of attorney for a building plan submission and other land matters, before the completion of a sale and purchase agreement (SPA) between them for the disposal. The SPA shall be executed within four months from the fulfilment of all conditions precedent, the filing added.

The MoU is not expected to have any immediate material effect on Lay Hong's issued share capital, net assets or earnings per share for the financial year ending March 31, 2019 (FY19).

Lay Hong’s share price closed 0.5 sen or 0.68% lower at 73.5 sen today, with 8.41 million shares done, for a market capitalisation of RM480.20 million.