KUALA LUMPUR (March 14): Utusan Melayu (M) Bhd has disposed of two adjoining semi-detached factories in Taman Shamelin Perkasa, Cheras for RM13.5 million to a unit of Berjaya Sports Toto Bhd.

On March 11, its wholly-owned unit Utusan Publications & Distributors Sdn Bhd (UP&D) entered into a sales and purchase agreement with Magna Mahsuri Sdn Bhd for the disposal, the media company said in a bourse filing. Magna Mahsuri is a wholly-owned unit of Berjaya Sports Toto Bhd, according to the latter’s latest annual report.

Utusan said the original cost of investment for the two factories in 1994 was RM4.32 million, and that the property is currently subject to a legal charge in favour of Malayan Banking Berhad.

As at Dec 31, 2017, the net book value of the properties amounted to RM2.15 million, while its market value according to a valuation conducted on Oct 3, 2018 was RM14.1 million.

Utusan plans to utilise the sale proceeds for working capital, which may include payment to creditors, statutory obligations, administrative expenses and other operating expenses.

Utusan closed 2.5 sen or 16.13% higher to 18 sen today, for a market capitalisation of RM19.93 million.