KUALA LUMPUR (April 24): SWS Capital Bhd (KL:SWSCAP) is disposing of an industrial property in Batu Kawan, Penang for RM13 million, as part of a group-wide rationalisation exercise aimed at unlocking the value of its investments and redeploying proceeds into other business ventures.

In a Bursa Malaysia filing on Friday, the group said its wholly-owned subsidiary EE-Lian Enterprise (M) Sdn Bhd had entered into a sale and purchase agreement with UWC Industrial Sdn Bhd, a wholly-owned unit of UWC Bhd (KL:UWC), for the disposal.

SWS Capital expects to record a net loss of RM1.46 million after accounting for real property gains tax, consent-related payments and estimated expenses.

Of the RM13 million proceeds, RM6.33 million has been earmarked for the settlement of a term loan with RHB Bank Bhd (KL:RHBBANK), while RM3.71 million will be used to settle amounts due to its holding company and RM1.5 million will be placed in fixed deposits for banking facilities.

The property comprises 6,674 square metres of leasehold industrial land with a double-storey office and a single-storey warehouse in Taman Perindustrian Batu Kawan, with the lease expiring on Aug 11, 2076.

“The proposed disposal is part of SWS's ongoing group-wide rationalisation exercise for the group’s operation. It allowed SWS Group to realise the value of its investments and redeploy the proceeds for other ventures within its operating units,” the company said.

Barring unforeseen circumstances, the disposal is expected to be completed by the fourth quarter of 2026.

SWS Capital’s shares were untraded on Friday. It last traded at 9.5 sen, with a market capitalisation of RM28.72 million. The stock has fallen over 32% year to date.