Rapid Synergy to sell property in Ipoh for RM25m

• It expects to incur a gain of about RM2.3 million from the disposal.

KUALA LUMPUR (June 27): Rapid Synergy Bhd said it is disposing of a property in Ipoh for RM25 million to fund its working capital and repay bank borrowings.

The property, which is located at Giant Hypermarket Bercham, has a net book value of RM23.09 million, said the precision tools maker and property investor, adding that it expects to incur a gain of about RM2.3 million from the disposal.

The sale to Intra Megamas Sdn Bhd is conditional upon the approval of the Perak state authority, said Rapid Synergy in a Bursa Malaysia filing.

“The proposed disposal is not expected to result in the company becoming a cash company or a Practice Note 17 issuer,” Rapid Synergy said.

As at end-March, the group had total borrowings of RM162.22 million, against cash and bank balances of RM7.43 million.