Fitters Diversified terminates land disposal on failure of payment from buyer

• Fitters said that the disposal between its indirect wholly-owned subsidiary — Rasa Anggun Development Sdn Bhd — and Aikbee had been terminated due to Aikbee’s failure to pay the balance purchase price on or before the extended completion date.

KUALA LUMPUR (Aug 4): Fitters Diversified Bhd has terminated its initial 18.97-hectare land disposal to Aikbee Development (Kepong) Sdn Bhd for RM36 million, owing to the buyer’s failure of payment.

In a filing with the local bourse on Friday (Aug 4), Fitters said that the disposal between its indirect wholly-owned subsidiary — Rasa Anggun Development Sdn Bhd — and Aikbee had been terminated due to Aikbee’s failure to pay the balance purchase price on or before the extended completion date.

“The termination will not have any material effect on the share capital and substantial shareholder’s shareholdings, net assets per share and gearing and earnings per share of the company for the financial year ending March 31, 2024,” the group added, further mentioning that the termination is in the best interest of the company and its subsidiaries.

According to its earlier filings, the 18.97-hectare land has a remaining lease tenure of 80 years (as of 2022) and the disposal was expected to be completed by the fourth quarter of 2022.

The proceeds raised were said to be utilised for Fitters' working capital purposes such as payment of staff-related expenses and other operational expenses.

For the group’s fourth quarter ended March 31, 2023 (4QFY2023), the group widened its net loss to RM27.20 million from RM4.41 million in the corresponding quarter last year, attributable to a loss on disposal of investment amounting to RM26.3 million.

The group’s quarterly revenue fell marginally to RM93.3 million from RM94.6 million in 4QFY2023.

Shares of Fitters Diversified closed half a sen or 14.29% higher at four sen, valuing the group at RM99.33 million. The counter has fallen 55.56% year to date.

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