KUALA LUMPUR (Dec 18): Majuperak Holdings Bhd is disposing of 2.01 acres of land in Ipoh to a wholly-owned unit of the Perak State Agriculture Development Corporation (PPPNP) for RM18.4 million as part of its business regularization plan.

Majuperak, a 51.41%-owned subsidiary of the Perak State Development Corp, said its wholly-owned subsidiary, Syarikat Majuperak Bhd, is selling the property to Ladang Lekir Sdn Bhd, a wholly-owned subsidiary of Perak Agro Oil Palm Sdn Bhd, which in turn is a wholly-owned unit of PPPNP.

The disposal will enable the group to unlock the land's value, the group said in a bourse filing on Monday, adding that the proceeds will be used to settle debts and for day-to-day operations.

Specifically, RM3.8 million will be allocated for housing development expenses and application of advertising permit and developer licence, RM8 million for debt settlement and RM6.6 million for working capital requirements.

"The proposed disposal forms part of Majuperak's business regularization plan, which is till in the midst of being finalised. Majuperak plans to make the requisite announcement for its proposed regularization plan by the second quarter of 2024," said Majuperak.

The disposal is expected to be completed by the second quarter of 2024.

In April 2020, Majuperak was classified as an affected issuer when its unaudited financial statements for the year ending Dec 31, 2019 showed insignificant business or operations.

The loss-making developer's quarterly net loss narrowed to RM3.31 million in 3QFY3023 from a net loss of RM10.35 million in the previous corresponding period. Quarterly revenue declined 72.58% to RM5.06 million from RM18.42 million.

Shares in Majuperak closed unchanged at 30 sen on Monday, giving the group a market capitalization of RM85.33 million.