KUALA LUMPUR (Sept 9): JAKS Resources Bhd (KL:JAKS) said it is disposing of 178.48 acres of oil palm land in mainland Penang for RM77.74 million.

In a filing with the stock exchange, the construction and power utilities group said it is selling four plots of the land to Summersonic Sdn Bhd for RM35.9 million, and the remaining 13 plots to Pacific Arena Sdn Bhd for RM41.8 million.

JAKS Resources said the land located in Seberang Perai Selatan had a net book value of RM15.97 million as of the end of December 2023. The group expects a net pro forma gain of RM50.38 million from the disposal.

Proceeds from the sale will be used for loan repayment and working capital, it added.

JAKS Resources said the sale and transfer of the land will require consent from relevant authorities and anticipates the disposal to be completed by the third quarter of 2025.

As of the end of June, JAKS Resources had short-term and long-term borrowings of RM59.89 million and RM407.62 million, respectively, against cash holdings of RM31.96 million.

The company reported a net profit of RM8.42 million for the second quarter ended June 30, 2024, a 56% decline from RM19.11 million in the same period last year, mainly due to a lower share of profit from its Vietnam joint venture.

Revenue, however, surged 295% year-on-year to RM13.1 million from RM3.31 million, driven by contributions from the power-energy division.

Shares in JAKS Resources closed down half a sen or 3.57% lower at 13.5 sen on Monday, giving the group a market capitalisation of RM351.92 million.