KUALA LUMPUR (June 4): Cymao Holdings Bhd will dispose of two parcels of industrial land for RM12 million cash, which is more than half its market capitalisation at the moment.

According to its filing with Bursa, Cymao Plywood Sdn Bhd, a wholly-owned subsidiary of Cymao, has entered into a sale and purchase agreement (SPA) with South Pacific Fish Processing Sdn Bhd for the disposal.

The filing said that the disposal of land was a result of the closure of Cymao Plywood’s mill, which will enable the group to unlock the value of land and availability of additional funds for working capital requirements of the group.

“The proceeds from the disposal of land will be channeled for the working capital requirements of the group,” it said.

The disposal of the two pieces of industrial land will result in a divestment gain of about RM9.2 million, reducing the accumulated losses of about RM29.13 million to RM19.9 million.

Net gearing will also improve from 0.13 times to 0.11 times.

As of closing, Cymao’s shares were untraded at 31.5 sen, giving it a market capitalisation of RM23.1 million.