KUALA LUMPUR: Gadang Holdings Bhd's wholly-owned subsidiary, Gadang Construction Sdn Bhd, has entered into a sale and purchase agreement with Opulent Abode Sdn Bhd to dispose of a piece of leasehold land in Sungai Buloh, Selangor for RM65 million.

Gadang said that the proposed disposal is expected to strengthen the group's cash flow position, which can be reallocated to ongoing and future construction projects.

"The proposed disposal aligns with the group's strategy to reduce its existing borrowings and improve its gearing ratio. It will not affect the issued share capital or the shareholdings of substantial shareholders," the company said in a stock filing exchange.

The company added that barring any unforeseen circumstances, the proposed disposal is expected to be completed by the first quarter of 2025.