KUALA LUMPUR (Nov 5): MMAG Holdings Bhd is planning to dispose of a piece of freehold vacant industrial land in Klang for RM13 million in cash to Acter Carton Enterprise Sdn Bhd.

The proposed disposal is via a sale and purchase agreement (SPA) entered between its unit Active Trio Deluxe Sdn Bhd (ATDSB) and Acter Carton Enterprise.

The land, measuring about 18,381 sq m or 197,853.08 sq ft, has a net book value of RM13.04 million based on audited financial statements of ATDSB for the financial year ended March 31, 2019 (FY19), MMAG said in a filing with Bursa Malaysia yesterday.

The original cost of the land stood at RM12.67 million, which was bought on June 18 last year.

The proceeds from the proposed disposal will be utilised for the purchase of two freehold parcels with buildings located at Kawasan Perusahaan Valdor, Pulau Pinang, the company said.

The proposed disposal is not expected to have any material effect on the company’s consolidated Net Assets (NA), NA per share and gearing, as well as consolidated earnings for the financial year ending March 31, 2020 (FY20), MMAG added.

Barring any unforeseen circumstances, the board expects the proposed disposal to be completed by the start of next year.

Just last month, MMAG had announced it is buying a piece of land together with buildings in Penang from Dynaciate Group Bhd, formerly known as Tatt Giap Group Bhd, for RM41 million to expand its logistics business.

Shares of MMAG closed unchanged at 36 sen yesterday, bringing its market capitalisation to RM257.46 million. 

Year-to-date, the counter grew some 56.5% from 23 sen. Prior to Sept 25 this year, the counter was below 30 sen, over the last four-and-a-half years.

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