KUALA LUMPUR (Oct 13): Pantech Global Bhd (KL:PGLOBAL) said it is disposing of a 10-acre freehold land which it acquired less than two years ago for the expansion of its operations in Klang, for RM31.73 million in cash.

The planned sale comes after regulatory delays on the development of a new factory on the site, which prompted the carbon steel pipe fittings manufacturer to acquire a different parcel of land in Klang for RM29 million in August last year under its revised development plans.

“The proposed disposal will enable the group to recover the capital outlay deployed for the property and redeploy the relevant funds towards the group’s ongoing development and operational requirements,” the group said in a bourse filing on Tuesday.

About RM25.31 million of the disposal price will go towards reimbursing the purchase of the new land, while the remainder RM6.42 million will be for working capital, said Pantech Global.

Its wholly owned unit, Pantech Steel Industries Sdn Bhd, inked an agreement with property developer Veltrix Land Sdn Bhd for the disposal on Tuesday. Veltrix Land is owned by Cheok Chin Hong and Ong Kah Hoe.

The land was acquired by Pantech Steel in December 2024 for RM29.79 million (inclusive of stamp duty and legal and professional fees). It expects to book a net pro forma gain of RM769,000 from the disposal.

The group anticipates completing the land sale by the first quarter of 2027.

Pantech Global acquired the new site, measuring 4.84 acres, from Uptown Promenade Sdn Bhd, a unit of Rhong Khen International Bhd (KL:RKI), in August 2025. The site will serve as its new corporate headquarters, production facility and warehouse by 2028.

Shares of Pantech Global ended one sen or 1.63% higher at 62.5 sen, valuing the group at RM531.25 million.