LTKM sells industrial land with factory for RM26 mil

KUALA LUMPUR (Dec 22): LTKM Bhd is selling a piece of freehold industrial land measuring 21,284 sq metres together with a factory in Kapar, Klang, for RM26 million, cash, to unlock the property's value and use the proceeds to acquire future strategic landbank.

However, according to its Bursa Malaysia filing today, LTKM expects the disposal to give rise to an estimated loss of RM767,200 after taking into account estimated expenses and tax expense.

LTKM said its unit Lumi Jaya Sdn Bhd has entered into a sale and purchase agreement with JM Asiajaya Sdn Bhd for the proposed disposal.

The poultry farm operator said the original cost of its investment in the land was RM22.84 million, while its audited net book value, as at March 31, 2015, was RM26 million.

It explained the disposal consideration was arrived at on a "willing buyer-willing seller" basis after taking into account the original cost of investments and the market value of the property, which is RM26 million, as appraised by Henry Butcher (Sel) Sdn Bhd for the financial year ended March 31, 2015 (FY15).

The sale proceeds to be generated from the proposed disposal is expected to be used for the group's future acquisition of landbank and/or for working capital.

Barring any unforeseen circumstances, the proposed disposal is expected to be completed in the second quarter of 2016.

Shares in LTKM closed up one sen or 0.66% at RM1.53, for a market capitalisation of RM199.06 million.