KUALA LUMPUR (May 9): Sin Heng Chan (Malaya) Bhd (SHC) is selling a tract of land in Melaka for RM14.39 million. 

The group said it was selling the 2.4ha leasehold plot to Sumber Setiamas Sdn Bhd for a gain of RM4.6 million. 

Proceeds from the sale would be utilised to finance its day-to-day operations, as well as pare down its borrowings, the group said in a filing today. 

SHC said the land, with a net book value of RM8.99 million, can only be used for a commercial building, and cannot be transferred or leased without approval from the Melaka authorities. 

“The rationale for the proposed disposal is to enable SHC to realise the value of the land which was vacant and unused, and to enable the SHC group to focus on its existing core businesses,” the group said. 

SHC’s share price closed unchanged to 32 sen today, with 10,000 shares traded, giving the group a market capitalisation of RM42.20 million.