adminKUALA LUMPUR: Eonmetall Group Bhd (EGB) through its wholly-owned subsidiary Eonmetall Land Sdn Bhd has entered into a conditional agreement to sell a plot of freehold land in Klang, Selangor to WG Malaysia VIII Sdn Bhd for RM273.28 million.
The land in question, with an area of approximately 2.88 million square feet, is designated for industrial use.
EGB in a filing to Bursa Malaysia today said the proposed sale is considered a related party transaction under the Main Market Listing Requirements due to the interests of several directors and major shareholders in the transaction.
“The proposed sale is a lucrative opportunity for the group to generate returns from the land as the buyer has identified the land as part of a larger information technology (IT) infrastructure development project.”
“Accordingly, the sale price reflects the value of land that has the potential for IT infrastructure development, thus providing a premium price compared to the same land for normal industrial use,” according to the material handling system manufacturer.
EGB, which recorded a net loss of RM47.31 million for the financial year ended Dec 31, 2025, said the proposed sale would enable the group to realise the value of the land at a profitable price and is expected to strengthen the company’s financial position.
“The group is expected to record a pro forma net profit attributable to the company’s owners of RM57.82 million,” he said.
EGB said the proceeds from the sale will be used primarily to repay loans, fund working capital as well as finance potential acquisitions.
The proposed sale is subject to approval by shareholders and relevant authorities, and is expected to be finalised in the second half of 2026, it said.
Wyncorp Advisory Sdn Bhd has been appointed as an independent advisor to assess whether the proposed sale is fair and reasonable to the disinterested shareholders of EGB and whether the transaction is detrimental to them.
— BERNAMA
