KUALA LUMPUR (Jan 24): Energy infrastructure group Wasco Bhd is disposing a parcel of land together with storage buildings erected on site in Shah Alam for RM40 million to Array Metal (M) Sdn Bhd.

The freehold land, measuring 18,363 sq m, is located along Jalan Bukit Kemuning in Section 34.

Wasco had spent RM10.19 million for the acquisition and related costs, and it has a carrying value of RM7.43 million as at end-2022, the company said.

Array Metal is principally engaged in manufacturing of cable support system, perforated steel material and flexistrut channel metal framing.

“The disposal will result in a one-off net gain of approximately RM31.8 million,” Wasco said.

Of the proceeds, RM30.5 million will be used for working capital, and another RM7 million will be used for debt repayment, Wasco said.

It expects the disposal to be completed this quarter.

At end-September, Wasco had short- and long-term borrowings of RM692.12 million and RM63.09 million respectively, against cash of RM165.63 million. 

The group, which had been profitable in its three latest quarters, had retained earnings of RM93.7 million.

Wasco shares closed unchanged at RM1.17, giving the group a market capitalisation of RM906.6 million. The counter has gained 17.5% this year.