KUALA LUMPUR (Nov 6): APB Resources Bhd (KL:APB) is selling its Shah Alam office building, known as Menara APB for RM45 million cash to an entity owned by the Selangor government.
APB Resources said it has entered into a conditional sale and purchase agreement with Menteri Besar Selangor Inc’s wholly-owned unit, Darul Ehsan Investment Group Bhd, its bourse filing showed on Friday.
The leasehold building comprises a 16 stories of offices and a four-level basement carpark. The lease expires in May 2100.
The RM45 million price is a 2.2% discount to the market value of RM46 million assessed by Laurelcap Sdn Bhd. As of March 31, 2026, the property's net book value stood at RM38.84 million.
APB Resources acquired the property in 2024 for RM39.89 million, and said it is currently not earning any rental income from the building.
APB Resources expects a net gain of RM3.23 million from the sale after considering its initial investment value, real property gains tax and disposal-related expenses.
The proceeds are to be used for repayment of RM37.1 million in bank borrowings, with the remaining balance allocated for working capital, real property gains tax, as well as disposal-related expenses.
Consequently, its net gearing ratio will reduce to 1.03 times from 1.67. As of Oct 26, the group had RM93.5 million in borrowings against RM10.82 million in deposits, cash and cash equivalents as at end-June.
The company said paying off the bank borrowings will save RM1.67 million in annual interest payments.
The disposal is expected to be completed by the second quarter of 2027, subject to shareholders’ approval at the upcoming extraordinary general meeting.
APB Resources' largest shareholder is Strategic A Holdings Sdn Bhd, with a 25.2% stake. This entity is collectively controlled by chief executive officer Ong Kok Wah, finance controller Lee Lisa, and deputy general manager Chan Fook Wah.
Additionally, politician Datuk Wan Adnan Wan Mamat, 66, is APB Resources' independent non-executive chairman, having been appointed on Sept 1.
Berjaya Securities has been appointed as the principal adviser for the proposed disposal of property.
At market close on Friday, APB Resources shares closed unchanged at 14 sen, valuing the company at RM19.8 million. The counter has fallen over 27% over the past one year.