KUALA LUMPUR (May 5): MWE Holdings Bhd plans to dispose of nine leasehold lands for RM54.93 million and its entire stake in MWE Golf and Country Club Bhd for RM1 to Newfields Land Sdn Bhd's wholly-owned subsidiaries.

"The proposed disposals are in line with MWE group's strategy to dispose of non-core businesses and loss making companies. The cash proceeds arising from the disposal of the lands will be utilised to pare down the group's bank borrowings and for working capital requirements," MWE said in a filing with Bursa Malaysia today.

MWE said it entered into two separate sale and purchase agreements. The first was by its indirect wholly-owned unit Melati Mewah Sdn Bhd, which will dispose of the 48.2ha lands in Mukim Raja, Petaling, in Selangor to Pristine Primawera Sdn Bhd.

The disposal consideration of the lands that are sold on an 'as is where is' basis was arrived at after taking into consideration the lands net book value based on MWE's latest financial statements of RM14.2 million as at March 31, 2015.

In the second deal, MWE plans to dispose of its entire shareholding of 25 million ordinary shares of RM1 each representing 100% equity interest in MWE Golf and Country Club to Saujana Setara Sdn Bhd, an investment holding company.

MWE is involved in garment sales and manufacturing; developing and leasing out residential and commercial properties and property management services; design, manufacturing and distribution of telecommunication products; oil palm plantation; importing and distributing trucks; golf course management; and corporate services.

"The proposed disposals are expected to be completed in the third quarter of financial year ending March 31, 2017," it said.

MWE shares were not traded today.