Memtech to record 21.7m yuan gain from sale of under-utilised land

AUTOMOTIVE components supplier Memtech International has agreed to sell two pieces of land in Huzhou City, Zhejiang, for 41 million yuan (S$8.5 million) in cash as a divestment of under-utilised assets.

Proceeds will be used for general working purposes.

The buyer is Zhejiang Add Auto-Parts Co, an unrelated Zhejiang-incorporated company.

The two plots of industrial land have a total gross area of 30,573.68 square metres. There are three buildings on the sites, with total gross area of 25,966.83 sq m.

The two sites are carried at total net book value of 17.3 million yuan on Memtech's balance sheet. The company will therefore record net gain of 21.7 million yuan through the disposal.

Memtech said that it is selling the land as part of a strategy to divest under-utilised assets.

Memtech shares were not traded on Friday, but the stock was last bid at 63 Singapore cents and offered at 65 Singapore cents.