KUALA LUMPUR (July 18): Poultry and egg producer Lay Hong Bhd is disposing of a piece of freehold land in Kuala Selangor for RM27.6 million.

Lay Hong said it is disposing of the land to Jernih Kejora Sdn Bhd to monetise idle assets and at the same time pare down borrowings of the group.

In a filing with Bursa Malaysia, Lay Hong said it bought the 34-acre piece of vacant land in March 1990 for RM887,000.

Considering the original cost of investment, Lay Hong is expected to gain RM26.71 million from the disposal. However, based on the land's net book value of RM29.04 million as at March 31, Lay Hong would be disposing it at a loss of RM1.44 million.

Shares of Lay Hong closed down 0.5 sen or 1.15% at 43 sen yesterday with a market capitalisation of RM283.92 million.

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