KUALA LUMPUR (Oct 12): Wasco Bhd (formerly known as Wah Seong Corporation Bhd)’s indirect wholly-owned subsidiary, Wasco AgroTech Sdn Bhd, has disposed of a piece of freehold land in Klang, Selangor for RM40 million.

In a Bursa Malaysia filing on Thursday, the group said it has entered into a sale and purchase agreement with Array Metal (M) Sdn Bhd for the proposed disposal on Oct 12.

According to the group, Array Metal is principally engaged in manufacturing of cable support system, perforated steel material and flexistrut channel metal framing.

“The rationale for the disposal of property is to realize the value of the land and strengthen the group’s liquidity and financial position,” it said.

Following the disposal, Wasco is expected to have a one-off net gain of RM31.8 million.

The group intends to use most of the proceeds for its working capital and debt repayment.

Meanwhile, Wasco said that the proposed disposal is expected to be completed by the first quarter of next year (1Q2024).

Shares in Wasco settled unchanged at 98 sen, giving it a market capitalization of RM759.39 million.

Year to date, the stock has climbed by 53.12%.