KUALA LUMPUR, April 28 (Bernama) -- Widad Group Bhd’s wholly-owned subsidiary, Widad Builders Sdn Bhd has inked a sale and purchase agreement (SPA) with Richfield Builder (M) Sdn Bhd (RBSB) for the disposal of a property for a total consideration of RM41.50 million.
Located in Damansara Heights, Kuala Lumpur, the property is a 12-storey office building, inclusive of six levels of elevated parking lots.
In a Bursa Malaysia filing today, the company said the proceeds from the disposal will be utilised to fully settle borrowings related to the property, as well as its working capital.
“The disposal represents an opportunity for the group to improve its financial performance by reducing finance cost, depreciation and improving cash flow.
“It is expected to incur an estimated loss of RM1.2 million, hence reducing net tangible assets accordingly. However, gearing will be improved following the reduction of borrowings by RM40 million,” it said.
Barring unforeseen circumstances, the disposal is expected to be completed within three months from the date of the SPA.
-- BERNAMA
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