Magni-Tech sells industrial land in Pulau Pinang for RM22m

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KUALA LUMPUR (Sept 9): Magni-Tech Industries Bhd said today that it is disposing of a piece of freehold industrial land with a factory on site in Seberang Perai, Pulau Pinang for RM22 million cash.

The 7.75-acre land with structures was acquired in 1990 for RM8 million, and carried a net book value of RM6.16 million as at end-April this year, according to a filing by the company.

The deal will add 3.6 sen to Magni-Tech’s earnings per share, considering the pro forma gain of approximately RM15.1 million.

The proceeds will help fund future business plans or investment opportunities, said the garment and packaging manufacturer.

Magni-Tech’s wholly-owned unit South Island Garment Sdn Bhd inked the SPA with the purchaser, Hallmark Equity Sdn Bhd for the transaction.

The company, which is listed on Forbes Asia’s Best Under A Billion 2020 list, saw its shares close up 7 sen or 3.29% to RM2.20, giving it a market capitalisation of RM953.59 million.

Lam Jian Wyn