Wing Tai unit sells Penang property for RM17.5m

WING Tai Holdings' Malaysian subsidiary has sold its property at 166A Rifle Range Road in Penang for RM17.5 million (S$5.6 million).

The aggregate consideration for the disposal of the property, which comprises a leasehold land and a 5-storey factory building, is higher than RM13.7 million net book value as at Monday (Apr 4), Wing Tai said in a bourse filing on Monday.

The buyers are Dapper Corporation and Chiao Huat, which are not related to Wing Tai, its subsidiaries nor its controlling shareholders.

Wing Tai pointed out that they paid the consideration - which was arrived at on a willing-buyer and willing-seller basis - in cash with an initial deposit of 10 per cent, followed by the balance upon completion of the transaction.

Wing Tai, meanwhile, noted that the disposal of the property was done in the "ordinary course of business". "It is not expected to have a material impact on the group's net asset value," it said, while declaring that none of its directors or controlling shareholders has any direct or indirect interest in the transaction.

Wing Tai shares closed down 0.6 per cent or S$0.01 at S$1.76 before the announcement on Monday.