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Amtek Holdings sells land in Klang to Specialty Fats for RM5.25 million

KUALA LUMPUR: Amtek Holdings Bhd is disposing of a 1.8-acre tract of leasehold land in Klang for RM5.25 million to Specialty Fats Sdn Bhd.

In a filing to Bursa Malaysia on May 10, the company said the deal comes with a 1-storey warehouse and a 2-storey office building, which has a total built-up area of 59,295 sq ft. Its audited net book value as at June 30, 2009, was approximately RM2.627 million.

Presently, the property is occupied by the shoes manufacturing segment of Amtek Holdings and its subsidiaries.

The leasehold land was purchased by Amtek Holdings on April 1986 for RM626,382 from the Selangor State Development Corp and the construction cost incurred on the buildings amounts to RM3.793 million.

The proposed disposal is expected to result in a net gain of approximately RM2.623 million.

The deal is in line with the group’s ongoing strategic plans to streamline and rationalise existing assets to focus on its core competencies in the manufacturing and trading of shoes, garment and apparels. It also provides a good opportunity for the group to dispose of and unlock the value of its non-core assets, the company said.

“The cash proceeds from the disposal will allow the group to have more funds to invest in its existing core business activities and also provide the group with additional flexibility in managing its funding requirements for the future growth,” it added.

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