KUALA LUMPUR (March 31): Piling and foundation specialist Pintaras Jaya Bhd is disposing of a plot of industrial land in Klang to Senheng New Retail Bhd’s wholly owned subsidiary Senheng Electric (KL) Sdn Bhd for a total cash consideration of RM25.28 million.

In a Bursa Malaysia filing, the group said the freehold land, measuring 11,744 sqm, was acquired in June 2011 for RM5.85 million.

“The proposed disposal is expected to generate an estimated net gain of approximately RM18.8 million before tax,” the group elaborated.

The proposed disposal represents an opportunity to realise the value of the land and unlock capital resources from being tied up as long term assets, it said.

“The proceeds derived from the proposed disposal will be utilised as working capital of the group,” it added.

In a separate filing, Senheng New Retail said the land is to be utilised as a warehouse and the main point to distribute products to other regional hubs and customers throughout Peninsular Malaysia, Sabah and Sarawak.

The property is strategically located next to its existing central distribution centre, it said. The acquisition will be satisfied by its internal funds and the company’s proceeds from the initial public offering early this year, it added.

Shares in Pintaras Jaya closed two sen or 0.78% higher to RM2.60 on Thursday (March 31), valuing the company at RM431.25 million.

Shares in Senheng New Retail closed up half a sen or 0.06% to 81.5 sen, giving it a market capitalisation of RM1.22 billion.