Fitters Diversified to sell 19-hectare land in Rawang, raising RM36 mil for working capital

KUALA LUMPUR (Sept 8): Fitters Diversified Bhd is divesting 18.97-hectare agriculture land with residential development potential in Rawang for RM36 million.

The leasehold land has a remaining lease tenure of 80 years, said Fitters in a stock exchange filing.

The buyer is Aikbee Development (Kepong) Sdn Bhd, a property developer wholly owned by Sit Seng & Songs Realty Sdn Bhd. The company's board of directors consists of Datuk Seri Tan Aik Chong and Datuk Seri Tan Aik Kiong.

Fitters, whose single largest shareholder is Datuk Seri Pang Chow Huat with a 7.9% stake, said the original cost of investment for the land was RM32.67 million, and the divestment would give rise to a gain of RM3.33 million.

The disposal is expected to be completed by the fourth quarter of this year, and the proceeds raised will be utilised for Fitters' working capital purposes such as payment of staff-related expenses and other operational expenses, the group said.

Fitters' cash and bank balances stood at RM54.69 million as at June 30, down from RM62.42 million at the end of the preceding quarter.

Shares of Fitters, which is involved in firefighting equipment manufacturing, renewable energy solutions and property development, closed unchanged at 6.5 sen on Thursday (Sept 8), giving the group a market capitalisation of RM40.35 million.

Year-to-date, the stock has dropped 79% from 31.5 sen at end-2021.