KUALA LUMPUR (Oct 21): Rapid Synergy Bhd (KL:RAPID) is disposing of two parcels of land in Penang for RM35 million to German semiconductor maker ams OSRAM International GmbH to fund working capital and repay borrowings.

The industrial mould maker inked an agreement with ams OSRAM’s Malaysian unit, Osram Opto Semiconductors (M) Sdn Bhd, for the disposal of the parcels measuring an of aggregate 4.2 acres, according to an exchange filing on Tuesday.

Single-storey factories are also situated atop the parcels.  

Rapid Synergy said the proposed disposal presents an opportunity for the company to unlock the land’s value and realise cash flow to fund working capital and repay bank borrowings.

The disposal is expected to result in a net gain of about RM26 million for Rapid Synergy, based on the properties’ net book value of RM4.67 million as per the group’s financial statement for the financial year ended June 30, 2024 (FY2024).

The RM35 million purchase consideration was agreed upon in consideration of the land’s indicative market value of RM31 million as appraised by an independent valuer in January 2024, the company noted.

Rapid Synergy expects the disposal to be completed within nine to 12 months.

Shares in Rapid Synergy ended one sen or 1.59% lower on Oct 21 at 62 sen, valuing the company at RM66.28 million.