KUALA LUMPUR (July 9): Advance Synergy Bhd is disposing of a piece of freehold land in Switzerland for 5.95 million Swiss francs (RM26.77 million).

Proceeds from the disposal of land, measuring 1,606 sq metres, would be used for the group's working capital, the group said in a filing with Bursa Malaysia.

The group said Posthotel Arosa AG, its 65%-owned subsidiary, is selling the land to hotel and catering service provider Postresidenz am See AG.

Advance Synergy expects to record a net gain of RM2.42 million following the sale of the land, which is located in the ski resort of Arosa.

As at Dec 31,2019, the net book value of the land stood at 4.47 million Swiss francs.

It said the disposal provides an opportunity for the group to unlock immediate value of land at a value higher than its net book value. Also, the group decided to sell the land after it decided not to rebuild the hotel.

The disposal is expected to be completed by Dec 31, 2020.

Shares of Advance Synergy closed 0.5sen or 3.33% lower at 14.5sen today, valuing the group at RM134.73 million. The stock saw some 5.32 million shares traded.