KUALA LUMPUR (Aug 17): PMB Technology Bhd's subsidiary PMB Land (Sg Besi) Sdn Bhd has proposed to sell land in Kuala Lumpur for RM37 million and use the proceeds to repay a loan and for working capital.

The disposal of the freehold land, measuring 6,658 square metres, is part of the company's plans to streamline its operations by focusing on its core business of aluminium smelting and channelling the proceeds towards its daily operating activities, it said in a filing with Bursa Malaysia.

PMB Technology will use RM21 million of the proceeds to settle bridging loan within six months, RM14.45 million as its working capital within 12 months, and RM1.55 million to defray expenses incurred from the sale.

"The proposed disposal is expected to contribute a net gain of approximately RM1.58 million to the group, of which shall increase the group's earnings per share for the financial year ending Dec 31, 2022," it said.

PMB Technology expects to complete the transaction within three to five months from Aug 17, the date it entered into a sale and purchase agreement with Faithview Resources Sdn Bhd.

The land has been approved for the development of one 27-storey block of studio apartments and serviced apartments.

Shares in PMB Technology closed up three sen or 0.92% at RM3.28 on Wednesday (Aug 17), giving the group a market capitalisation of RM4.12 billion.