Gabungan AQRS Bhd’s 52%-owned unit, Prestige Field Development Sdn Bhd (PFDSB), has entered into a sale and purchase agreement with Stratmont Development Sdn Bhd for a proposed disposal of a 7.977-acre (3.228-hectare) leasehold land in Selangor for RM50.38 million.
In a filing to Bursa Malaysia Wednesday, Gabungan AQRS said the proposed land sale was to realise a gain as well as to raise funds as working capital and/or repayment of PFDSB’s bank borrowings.
“It is also in line with Gabungan AQRS group’s de-gearing exercise to strengthen its financial footing,” it said, adding that the expected gain from the proposed disposal of the land is about RM14.70 million.
“The net proceeds arising from the exercise are expected to be primarily utilised for the full settlement of the redemption sum due and payable to PFDSB’s financier in order to obtain a valid and registrable discharge of the existing charge on the land from the financier,” it said.
The company said the proposed disposal is expected to be completed by the financial year ending December 31, 2016.