KUALA LUMPUR (Dec 3): Tafi Industries Bhd (KL:TAFI) has announced the disposal of its furniture factory land in Muar to Bripanel Industries Sdn Bhd, a wholly owned subsidiary of Dominant Enterprise Bhd (KL:DOMINAN), for RM23.5 million.

In a filing with Bursa Malaysia, Tafi said the divestment signals its exit from loss-making furniture manufacturing operations. The property covers 2.074 hectares, with factory facilities offering a gross built-up area of 149,753 sq ft.

Bripanel, the purchaser, is principally engaged in the manufacturing of laminated wood panel products.

Tafi said the land was originally acquired at a cost of RM9.1 million. After deducting real property gains tax, selling expenses, and compensation related to the early termination of a solar PV agreement, the group expects to record a gain of approximately RM9.75 million from the disposal.

Going forward, the group will continue to participate in the furniture business through collaborations with external suppliers and manufacturers, rather than operating its own facilities.

The company added that the disposal is expected to strengthen cash flows and enable it to concentrate on expanding its profitable property development and construction segments. These businesses are anticipated to drive earnings growth and enhance earnings per share.

Completion of the transaction is targeted for the first half of 2026.

By Wednesday’s close, shares in Tafi Industries were unchanged at 52.5 sen, valuing the group at RM199.2 million. Meanwhile, Dominant Enterprise’s shares were up half a sen or 0.6% at 80 sen, giving the company a market capitalisation of RM132.19 million.