LKL International sells land in Serdang for RM6.65 mil

Oct 11, 2023

KUALA LUMPUR (Oct 10): LKL International Bhd, whose share price has halved since the start of the year, is selling a parcel of land in Serdang, Selangor for RM6.65 million, its Bursa Malaysia filing showed.
The company had completed the purchase of the freehold land, together with a unit of three-storey semi-detached factory erected thereon, in December 2022 for RM5.98 million, according to the bourse filing.
The medical and healthcare bed manufacturer said its wholly-owned subsidiary, LKL Advance Metaltech Sdn Bhd has entered into a Sale and Purchase Agreement (SPA) on Oct 10 with JLL Electrical Sdn Bhd for the proposed disposal.
According to the group, proceeds from the proposed land disposal will be utilised for working capital and/or potential investment within 12 months from the completion of the proposed disposal.
“The proposed disposal is a strategic move to unlock its value and generate surplus cash.
“By reallocating these funds toward working capital and potential investments, the company aims to strengthen its liquidity position and support its core business activities, ensuring a more efficient allocation of resources and fostering the growth and development of its operations,” it said.
Meanwhile, the group highlighted that the proposed disposal is expected to be completed by the first quarter of next year (1Q2024).
Shares in LKL gained 0.05 sen to close at 15 sen, valuing the healthcare group at RM58 million. Since the beginning of the year, the stock has fallen 58.33%.
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Source: EdgeProp.my