KUALA LUMPUR (July 9): PTT Synergy Group Bhd (KL:PTT) is disposing of a freehold industrial property in Klang for RM17 million cash to streamline its non-core assets and reduce operating and maintenance costs.

The group said it plans to use RM11 million of the proceeds to repay bank borrowings, and the remaining RM6 million for working capital. As at end-March, PTT Synergy had cash and bank balances of RM24.59 million against total borrowings of RM828.5 million.

In a Bursa Malaysia filing on Thursday, PTT Synergy said the property, located in Bandar Bukit Raja, comprises a double-storey detached factory with a gross built-up area of 20,197 sq ft. It has a net book value of RM15 million based on PTT Synergy's latest audited financial statements, and an original investment cost of RM11.28 million.

The buyer is WDG Resources Sdn Bhd, a Klang-based firm involved in the trading, rental, and servicing of industrial machinery. It is 75%-owned by Danny Ang Cha Sen, and 25% by Epilog Tegap Sdn Bhd.

PTT Synergy said it expects to record a gain on disposal of RM2 million from the transaction, which is expected to be completed by the first quarter of the financial year ending June 30, 2027.

Shares of PTT Synergy closed three sen or 1.96% lower at RM1.50 on Thursday, valuing the construction and warehouse solutions provider at RM716.05 million.