KUALA LUMPUR (Dec 4): Utusan Melayu (Malaysia) Bhd is disposing of its five-storey corner shop-office at The Right Angle in Section 14, Petaling Jaya, for RM7 million.

In a filing with Bursa Malaysia today, the group said it has entered into a sale and purchase agreement with Eden Resources Sdn Bhd.

Utusan said the original cost of investment in the property was RM4.82 million when it was acquired in December 1995, while the net book value of the property as at Dec 31, 2017 stood at RM2.74 million.

The sale of the land is expected to result in a net gain of about RM3.95 million, it said, adding that it would not have any material effect on its net assets and gearing.

“The net proceeds from the proposed disposal are intended to be utilised partially to fund working capital requirements for the Utusan Group to finance its day-to-day operations, including payment to creditors, such as suppliers and statutory obligations, administrative expenses, such as salaries and wages and other operating expenses, such as promotional activities etc.

“The actual utilization has not been determined at this juncture and may differ at the time of utilization,” it said.

Utusan said the disposal provides an opportunity for the group to unlock the immediate value of the property as well as enabling it to raise funds for working capital requirements.

It expects to complete the sale by the end of the fourth quarter of 2019.

Utusan shares were untraded today. The counter was last traded at 8.5 sen, giving it a market capitalisation of RM9.41 million.