APB Resources To Dispose Of Menara APB For RM45 Mln

KUALA LUMPUR, Nov 6 (Bernama) -- APB Resources Bhd has proposed to dispose of Menara APB, a 16-storey office building in Shah Alam, Selangor to Darul Ehsan Investment Group Bhd (DEIGB) for RM45 million cash.

APB said in a filing with Bursa Malaysia that the company, which is involved in investment holding and the fabrication of custom-designed process and engineering equipment, said it had entered into a conditional sale and purchase agreement with DEIGB, a wholly owned subsidiary of Menteri Besar Selangor (Incorporated), today.

The proposed disposal is expected to generate an estimated net gain of RM3.23 million and annual interest savings of RM1.67 million through the repayment of borrowings.

APB Resources said it plan to use RM37.07 million of the proceeds to repay borrowings, RM5 million for working capital, RM936,000 for real property gains tax and RM1.99 million for disposal-related expenses.

The repayment is expected to reduce the group's gearing ratio from 1.71 times as at March 31, 2026, to 1.03 times.

The company said the disposal would unlock the value of Menara APB, which is currently vacant and does not generate rental income, while strengthening the group's financial position.

Its finance costs amounted to RM6.41 million in the financial year ended March 31, 2026 (FY2026), accounting for 38.75 per cent of its net loss after tax of RM16.54 million.

The group's total outstanding borrowings stood at RM93.47 million as at Oct 26, 2026.

The RM45 million disposal consideration represents a 2.17 per cent discount to the property's market value of RM46 million, as appraised by independent valuer Laurelcap Sdn Bhd on Oct 30, 2026.

The proposed disposal is subject to shareholders' approval and consent from the relevant state authority.

It is expected to be completed by the second quarter of 2027, subject to the necessary approvals and barring unforeseen circumstances.

-- BERNAMA