KUALA LUMPUR (Feb 7): PLB Engineering Bhd has entered into a deal to sell a vacant piece of land in Bandar Tanjung Bungah, Penang, measuring 1,922 square metres, for RM11.5 million.

The disposal of the freehold land to Victorious Triumphant Sdn Bhd provides an avenue for the group to monetise the value of its land bank while at the same time improve its cash flow, said PLB Engineering in a filing with Bursa Malaysia on Wednesday.

The group said it bought the land in 2009 for RM5.49 million. As at Aug 31, 2023, the audited net book value of the land stood at RM8.45 million. As such, the disposal is expected to result in a gain of about RM1.49 million.

PLB Engineering said the net proceeds will be utilised for repayment of bank borrowings worth up to RM8.05 million, and as working capital for the group.

The group, which expects the disposal to be completed by July 6, 2024, said the net proceeds are expected to be fully utilised within two months from the completion date.

According to the group, Victorious Triumphant is owned by Goh Poh Choo, while its sole director is Chuah Chong Ewe. Chuah is the executive chairman of LFE Corp Bhd, and managing director of Luster Industries Bhd.

PLB Engineering shares closed three sen or 2.78% lower at RM1.05 on Wednesday, giving the group a market capitalisation of RM118 million.