KUALA LUMPUR (July 8): Kumpulan Perangsang Selangor Bhd (KPS) has disposed of three properties in Johor for RM22.5 million.

The group said in a bourse filing yesterday, its indirect wholly-owned subsidiary Toyoplas Manufacturing (Malaysia) Sdn Bhd (TMM) has disposed of three parcels of leasehold land together with their factories to Wiley Development Sdn Bhd.

The expected net gain on the disposal is RM12.8 million, it added.

KPS said the disposal will enable it to monetise its unutilised assets and generate cash to be channelled for other purposes including to fund planned capital expenditures in line with its business plan.

It also provides an opportunity for TMM to focus on its core business which is manufacturing without needing to allocate its resources for maintenance of the unutilised properties, it said.

According to KPS, the expected net cash proceeds from the disposal is approximately RM20.3 million, of which RM16 million will be used by TMM to finance capital expenditure for expansion into Vietnam, and RM4.3 million will be used for working capital of TMM and its subsidiaries.

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