KUALA LUMPUR (Oct 10): Digistar Corp Bhd is selling two parcels of freehold land in Melaka for RM7.76 million cash.

The land, measuring a combined 4.1197 hectares, is vacant agricultural land. The group is expecting a loss of RM98,000 arising from the land sales.

Digistar said its wholly owned unit Mulia Optima Sdn Bhd (MOSB) entered into a sale and purchase agreement with Earnings Base Sdn Bhd (EBSB) for the land transaction.

MOSB is principally engaged in the business of property investment, while EBSB is involved in the business of construction sub-contractor.

Of the sales proceeds, Digistar said it plans to use RM4.6 million for its working capital requirement, while the remaining RM3.1 million will be used to defray expenses related to this disposal.

The land disposal is expected to be completed by end-2023.

Digistar’s share price closed unchanged at 6.5 sen, giving the group a market capitalisation of RM30 million.