Nationwide Express to sell property in Shah Alam at Rm3.8mil loss

KUALA LUMPUR: Nationwide Express Holdings Bhd has proposed to sell its property in Shah Alam, Selangor, for Rm19.4mil, which will result in a net loss of Rm3.8mil.

The courier service provider said the property – a three-storey office building, one-storey detached warehouse building annexed with two two-storey office buildings and ancillary buildings on a leasehold industrial land – had been advertised or sale for the past six months.

“The consideration (from real estate firm Rubicon Lexington Sdn Bhd) was the highest consideration received by (Nationwide Express’ wholly-owned unit) Nationwide Express Courier Services Bhd from a closed tender undertaken for its disposal,” it said in a filing with Bursa Malaysia yesterday.

Nationwide Express, which slipped into Practice Note 17 status in February, said its board believed that the proposed sale would enable the group to monetise its assets and unlock capital resources from being tied up in long-term assets to strengthen its financial position.

“The proposed disposal will also allow the group to streamline its operation by centralising the headquarters and the logistics centre at the same location and hence optimise assets utilisation.

“In addition, the proceeds will provide funds as additional working capital for the group and are expected to have a positive impact on earnings,” it said.

The proposed deal is subject to its shareholders’ approval. — Bernama