Konsortium to dispose of land for RM19.8m

KUALA LUMPUR: Konsortium Logistics Bhd is to dispose of a piece of its land for RM19.8 million. The proceeds will be used as working capital as part of its plan to drive growth.

In a filing with Bursa Malaysia, Konsortium Logistics said the 11.76ha parcel located off the North-South Highway and near Prai Industrial Estate/Taman Nagasari Prai was acquired in 1995 for RM17 million.

"CH Williams Talhar & Wong Sdn Bhd was engaged by the company to perform a valuation on the market value of the land. Based on their report dated Nov 12, 2010, the market value of the land is RM15 million." said the company which is in involved in four areas of logistics — automotive, oil and gas, distribution and project logistics.

The land, which is being sold to Setia Jutaria Sdn Bhd, will bring an estimated gain of RM4.3 million.

According to the company, the proceeds of sale will be utilised by 2QFY12.

"The working capital is to support the business opportunities in various segments, as part of the group's strategic plan to drive revenue growth," said Konsortium Logistics in its filing.