KUALA LUMPUR (March 3): Eurospan Holdings Bhd’s unit is selling its property in Kulim, Kedah, for RM6.95 million in cash, which will be utilised for working capital.

The group said the 88,060 sq ft land, including a single-storey office building, is presently not in use. Therefore, the disposal will realise the increase in value of the property it acquired in 1995.

Its wholly owned unit Dynaspan Furniture Sdn Bhd has entered into the sale and purchase agreement with three individuals, namely Khoo Kok Seang, Khoo Kay Sen and Khoo Yi Sen, on Friday (March 3).

Dynaspan’s principal activity is the manufacturing of furniture and wood-based products.

“A one-off gain on disposal of about RM5.1 million will only be recognised upon completion of the proposed disposal,” Eurospan wrote in a Bursa Malaysia filing.

The company added that the disposal is expected to be completed by the second quarter of its financial year ending 2024 (2QFY2024), which is by November 2023.

Eurospan's share price closed unchanged on Friday at RM1.16, valuing the group at RM51.53 million.