KUALA LUMPUR (July 10): Integrated construction and property company PTT Synergy Group Bhd (KL:PTT) is disposing of two units of three-storey detached factories in Sepang, Selangor, to MCM Land Sdn Bhd for RM26 million.

PTT Synergy said its wholly owned subsidiary Pembinaan Tetap Teguh Sdn Bhd (PTTSB) has entered into two separate sale and purchase agreements with MCM Land, pricing each property disposal at RM13 million.

MCM Land primarily engages in investment holding, with its base in Seremban, Negeri Sembilan, according to PTT’s bourse filing on Wednesday.

The disposal consideration represents an 8.33% premium over the current market value of the properties, appraised at RM24 million by independent valuer Laurelcap Sdn Bhd.

PTT Synergy, whose share price has surged 108.20% year-to-date, said the disposal is part of its effort to rationalise non-core assets.

"With the proposed disposal, this will reduce PTT Synergy's operational cost and maintenance cost of the properties," it added.

Proceeds from the sale will be allocated to repay bank borrowings of RM9.5 million, while the remaining RM16.5 million will settle debts owed by PTTSB and PTT Infra Sdn Bhd to MCM Petroleum Sdn Bhd.

The proposed disposal is not anticipated to have any material effect on the group's earnings or consolidated earnings per share for the financial year ended June 30, 2024 (FY2024).

Subject to unforeseen circumstances, the disposal is expected to be completed by the first quarter of FY2025.

PTT Synergy shares closed two sen or 0.79% higher at RM2.54 on Wednesday, resulting in a market capitalisation of RM548.85 million.