Utu­san Me­layu plans to sell shop of­fice in PJ for RM7mil

The Star Malaysia - StarBiz - - News -

PE­TAL­ING JAYA: Fi­nan­cially embattled Utu­san Me­layu (M) Bhd has pro­posed to sell its five-storey cor­ner shop of­fice in Pe­tal­ing Jaya, Se­lan­gor for RM7mil to raise funds for work­ing cap­i­tal re­quire­ments.

The me­dia com­pany said the pro­posed dis­posal would pro­vide an op­por­tu­nity for the group to un­lock the im­me­di­ate value of the prop­erty, for which it in­curred an orig­i­nal cost of in­vest­ment of RM4.82mil in De­cem­ber 1995.

The pro­posed dis­posal is ex­pected to re­sult in a net gain of RM3.95mil for the group.

In its fil­ings with Bursa Malaysia yes­ter­day, Utu­san said its wholly-owned sub­sidiary Me­di­a­mony Sdn Bhd had en­tered a con­di­tional sale and pur­chase agree­ment with Eden Re­sources Sdn Bhd for the pro­posed dis­posal of the five-storey cor­ner shop of­fice, which is held un­der a lease­hold ti­tle ex­pir­ing on Dec 16, 2086.

The prop­erty is lo­cated at No 11, The Right An­gle on Jalan 14/22, Pe­tal­ing Jaya with an area mea­sur­ing 514 sq m.

Utu­san said the pro­posed dis­posal of the prop­erty was in the best in­ter­est of the group as it would en­able the group to raise funds for the work­ing cap­i­tal re­quire­ments.

“The net pro­ceeds from the pro­posed dis- posal were in­tended to be utilised par­tially to fund work­ing cap­i­tal re­quire­ments of the group to fi­nance its day-to-day op­er­a­tions, in­clud­ing pay­ment to cred­i­tors, such as sup­pli­ers and statu­tory obli­ga­tions, ad­min­is­tra­tive ex­penses, such as salaries and wages and other op­er­at­ing ex­penses, such as pro­mo­tional ac­tiv­i­ties,” it said.

The pro­posed dis­posal of the lease­hold prop­erty came hot on the heels of the me­dia com­pany’s re­cently an­nounced plan to dis­pose of its 4,715 sq m in­dus­trial lease­hold land in Kuala Lumpur for RM18mil last month.

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