Kossan disposes of unutilised Kuala Langat land for RM147.75m

KUALA LUMPUR (Jan 16): Kossan Rubber Industries Bhd is disposing of a vacant freehold industrial land in Kuala Langat, measuring 390,397 sq metres, for RM147.75 million.

The sale of the land to Liansheng Paper (Malaysia) Sdn Bhd provides the group the opportunity to unlock the value of the land, Kossan said.

The land has a market value of RM145 million, Kossan said in a filing with Bursa Malaysia, adding that the audited net book value of the land as at December 2018 was RM96.7 million.

Kossan expects to bring about a net gain of RM35.4 million from the sale of the land.

The group said the funds raised from the disposal are intended to be utilised to hasten the development of its Bidor land.

The group had in March 2018 acquired two pieces of leasehold industrial land measuring 824 acres in Bidor with a view to consolidate and centralise all future business expansion to the site.

Kossan's share price shed 4 sen or 0.94% to close at RM4.16 today with a market capitalisation of RM5.32 billion.