KUALA LUMPUR (March 16): Vortex Consolidated Bhd has proposed to dispose of a factory located in Shah Alam for RM10.6 million, which will go towards the group’s business operations.
In a filing today, the group said its wholly-owned subsidiary, Open Adventure Sdn Bhd, had entered into an agreement with Classic Blossom for the sale.
The disposal will result in a gain of RM1.8 million, amounting to a 22% return on its initial investment. Vortex had purchased the asset on Dec 8, 2017 for RM8.12 million.
“The consideration, after netting off the expenses and real property gains tax in relation to the proposed disposal, is intended to be used for the group’s working capital purposes.
“The exact breakdown and the timeframe for the utilisation will be determined by the management at a later stage, after taking into consideration, among others, the internal generated fund and the funding requirement by various divisions of the group,” the group said.
Vortex expects to complete the proposed disposal in the first quarter of the financial year ending March 31, 2021.
Vortex’s share price closed unchanged at three sen, giving a market capitalisation of RM14.33 million.