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ATLAN Holdings Bhd has sold seven pieces of land in Penang measuring 24.7ha to Utara Malaya Realty Sdn Bhd for RM145 million cash.In a statement yesterday, Atlan said its wholly-owned subsidiaries Blossom Time Sdn Bhd and Radiant Ranch Sdn Bhd sold the land as part of its business strategies.
"The directors have decided to sell as opposed to continue with its original development plans for the land after taking into consideration the estimated time frame and resources required to develop the land over the next five years given the competition of other developments within the vicinity."
The sale will enable the company to realise proceeds of RM145 million and an estimated after-tax gain of disposal of about RM80 million.
The proceeds will substantially be utilised for the repayment of bank borrowings and working capital of the Atlan Group which is expected to result in an interest saving of RM8 million an annum.
By Business Times
