Knusford to sell Setapak land for RM7m to fund working capital

KUALA LUMPUR (March 12): Knusford Bhd (KL:KNUSFOR) is disposing of a 0.304-hectare freehold land in Setapak, Kuala Lumpur, for RM7 million cash in a related-party transaction.

Knusford is expected to record a net gain of RM4.55 million from the land sale, with proceeds utilised for the group’s general working capital. The disposal also provides an opportunity for Knusford to unlock the value of its investment in the property and monetise a non-core asset, the company said in a bourse filing on Wednesday (March 11).

Knusford said its wholly-owned subsidiary Knusford Holdings Sdn Bhd has entered into a conditional sale and purchase agreement with Tahap Juara Sdn Bhd. Tahap Juara’s shareholders include Datuk Lim Hoe, Lim Siew Hua, Lim Hai, who are siblings of Tan Sri Lim Kang Hoe, the major shareholder of Knusford.

The board expects the proposed disposal to be completed by July 2026.

The group is principally engaged in trading sales and rental of light, medium and heavy machinery and equipment as well as building materials, AskEdge data showed.

Knusford shows a negative trailing twelve-month earnings before interest tax depreciation and amortisation margins of 12.9% and a negative 5.6% return on equity, according to AskEdge data.

Knusford's share price last traded at 39 sen on Monday, with a market capitalisation of RM38.9 million.

..........

Unlock Malaysia’s shifting industrial map. Track where new housing is emerging, as talents converge around Industry 4.0 parks across Peninsular Malaysia. Download the Industrial Special Report now.