Acoustech Bhd to sell property for RM11m

Acoustech  Bhd to sell property for RM11m

PETALING JAYA, Jan 19: Acoustech Bhd proposes to sell its property in Klang to Full Sprint Sdn Bhd for RM11 million under a sale and lease back arrangement.

In a filing with Bursa Malaysia yesterday, Acoustech said its wholly owned subsidiary Formosa Prosonic Technics Sdn has signed a tenancy agreement with Full Sprint for the rental of the property upon completion of the proposed disposal, for a monthly rental of RM68,044.50 or 80 sen per square foot.

Last year, FPT disposed of its manufacturing assets in the Sungai Petani plant and ceased a major part of its operations there. Since then, FPT has consolidated its manufacturing activity in Port Klang, which enabled it to rationalise the group’s asset by reducing excess manufacturing capacity.

“Given the current subdued property market conditions and negative economic sentiments, management is of the opinion that it is better for the property to be disposed of to the purchaser who has agreed to pay for the property at market valuation and accept the lease back arrangement rather than delay this option to a later date when there is no certainty that the property market will improve in the near term nor will there be better offer from potential purchasers given the depressed economy and negative economic outlook in Malaysia,” it added.

The property sits on 17,471 square metres of leasehold land in an industrial estate in Port Klang. The buildings constructed on the land are a four-storey office, factory, warehouse, basketball hall, canteen and guardhouse with a total net floor area of 9,255.86 square metres.

Based on the audited consolidated financial results for the financial year ended Dec 31, 2014, Acoustech and its subsidiary is expected to realise an estimated one-off net gain (after taxation) of about RM151,791 from the proposed disposal. The net book value of the property as at Dec 31, 2015, was RM10.74 million.

The company originally invested RM13.304 million on the land and buildings between 1992 and 1996.

Acoustech plans to use the proceeds of the sale to acquire a factory (RM5 million), rental payments (RM2.5 million) and working capital (RM3.4 million). The remaining RM100,000 will be set aside to defray expenses.

The proposals will result in a gain of about 9 sen per Acoustech’s share for the financial year ending Dec 31, 2016. The disposal is expected to be completed by the second quarter of 2016.

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