KUALA LUMPUR: DFZ Capital Bhd has proposed to sell three plots of freehold land measuring 2,324,746 sq ft in Bukit Kayu Hitam, Kedah, for RM8.6 million cash, it announced on Bursa Malaysia on Wednesday, Sept 8.
The group, via its unit Cergasjaya Sdn Bhd has entered into a conditonal sale and purchase agreement (SPA) with Commerce Trade International Sdn Bhd.
The land parcels are classified as Malay reserve land, and is designated for palm oil agriculture.
DFZ had acquired the land for RM4.03 million in 1998, and is to be sold on an "as is where is" basis, free from all encumberances.
The group said the consideration of RM8.6 million was arrived at on a "willing-buyer willing-seller" basis after taking into consideration the net book value of the land parcels at RM3.44 million as at July 31, 2010.
Among the conditions precedent to the satisfaction of the SPA, the approval of shareholders of the purchaser, vendor and holding company of the vendor at an extraordinary general meeting regarding the transaction of the land, as well as approvals from other relevant authorities.
DFZ said the disposal would result in a gain of RM4.8 million, boosting its earnings and net assets upon completion. The group will use the proceeds for working capital purposes.
The disposal will also serve to streamline its assets to be in line with its core business.