Sapura Auto to sell property for RM49m

SAPURA Auto Sdn Bhd is proposing the disposal of a piece of land in Kuala Lumpur, which presently houses an automobile showroom, to Sime Darby Motor Division Sdn Bhd for RM49.054 million, cash.

Sapura Auto, a subsidiary of Sapura Resources Bhd, said the proposed disposal could result in a net gain of RM22.98 million and address the continued losses arising from the group's automotive business.

"The proposed disposal enables the company to unlock the value of its assets and raise immediate funds which may be channelled towards the acquisition of new businesses, expansion of existing businesses and or pare down the group's borrowings," it said in a note to Bursa Malaysia today.

Sapura Auto bought the land and the building for RM26.13 million in November 2006.
However, the land and building has been collectively appraised by Messrs Henry Butcher for RM47 million in comparison with existing properties transacted around the vicinity.

By Bernama