K-Fix Production, a wholly-owned subsidiary of Kingsmen Creatives 5MZ , has proposed the disposal of its Mukim Senai property in Johor, Malaysia for a purchase consideration of RM46 million ($13 million).
On March 11, Kingsmen announced that K-Fix had entered into a sale and purchase agreement with Hiroyuki Industries for the freehold property, which comprises industrial land area and built-in area of approximately 37,104 sqm and 14,446 sqm respectively, and includes three units of detached factory buildings.
The net tangible asset value and book value of the property was $9,384,000 as at Dec 31, 2023, while the net profit attributable to the property for the FY2023 ended Dec 31, 2023, came to $82,000.
Kingsmen says the proposed disposal is part of its ongoing efforts to streamline business operations and will allow the group to focus and reallocate resources to improve business planning and management in line with its business strategies and direction.
The net proceeds from the proposed disposal — expected to come to $3,022,000 — are intended to be used for the repayment of bank loans secured by the property and other general working capital requirements.
Shares in Kingsmen closed unchanged at 27 cents on March 11.
