KUALA LUMPUR (July 18): ACE Market-listed Tex Cycle Technology (M) Bhd is disposing of a three-storey detached industrial building constructed on a piece of leasehold land measuring 4,823 sq m in Jalan Kuchai Lama, for RM29 million.

The group is selling the property, via its wholly owned unit Metro Envy Sdn Bhd, to Gorgeous Arena Sdn Bhd (GASB), Tex Cycle said in a filing with Bursa Malaysia.

GASB is involved in buying, selling, renting and operating self-owned or leased non-residential buildings. Its directors and major shareholders are Tan Sri Cheng Joo Teik and Datuk Lim Kim Huat.

Tex Cycle said the divestment, which is expected to be completed by the first quarter of 2024, will result in a gain of RM7.11 million.

The group, which has seen the emergence of Keh Chuan Seng and Lee Hai Peng as its substantial shareholders, is actively seeking mergers and acquisitions opportunities, according to The Edge Malaysia weekly in its June 12-18 issue.

Keh became the single largest shareholder of Tex Cycle after acquiring an indirect stake of 26.43%, via a direct business transaction made by his property firm Frazel Group Sdn Bhd on April 27. On the same day, Lee became a substantial shareholder of Tex Cycle after acquiring a direct stake of 5.13% via another direct business transaction.

Their blocks of shares were acquired from Tex Cycle’s previous major shareholder Can Cycle Sdn Bhd, which disposed of its entire 31.56% stake.

Shares of Tex Cycle closed down half a sen or 0.65% at 76 sen on Tuesday (July 18), giving the group a market value of RM193.41 million. Year-to-date, the counter has risen over 85%.

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