Rapid Synergy sells properties in Perak for RM7 mil gain

• The parcel of land comes together with a one-storey commercial shopping complex and a one-storey temporary building comprising a futsal court and a commercial lot.

KUALA LUMPUR (Sept 15): Precision tool-making company Rapid Synergy Bhd has disposed of 6,653/10,000 undivided share of a parcel of land in Manjung, Perak, measuring 303,487 sq ft, to Yokado Sdn Bhd for RM22.89 million cash.

The parcel of land comes together with a one-storey commercial shopping complex and a one-storey temporary building comprising a futsal court and a commercial lot.

Rapid Synergy said the sale consideration is 23.54% lower than the indicative market value of the apportioned properties of RM29.94 million calculated based on RM98.65 per sq ft, as last appraised in a valuation report by an independent valuer for the management’s internal review and assessment.

It is also lower than the company's original cost of investment in the properties of RM26.62 million in January 2006.

However, it is expected to report a gain of RM7 million from the proposed disposal. This is after taking into consideration the unaudited net book value of the properties of RM14.43 million as at July 31, 2023, the estimated expenses in relation to the exercise of RM569,000 and estimated Real Property Gains Tax (RPGT) of RM846,000.

In a filing with Bursa Malaysia, Rapid Synergy said it had on Friday entered into a sale and purchase agreement (SPA) with Yokado for the proposed disposal. Yokado is equally owned by its directors Lai Sia Ling and Lai Siah Yang.

Rapid Synergy said the proposed disposal thus represents an opportunity for the group to unlock and realise the value of the properties, fund working capital (including business expansion) and/or repay bank borrowings of the group. The land is currently charged to Public Bank Bhd, but Rapid Synergy said it will take steps to effect the discharge of the properties from the bank.

As at Dec 31, 2021, Rapid Synergy has a net debt of RM140.12 million, with a net gearing of 0.882 times.

The proposed disposal is not subject to the approval of Rapid Synergy shareholders, and is thus deemed completed.

Rapid Synergy’s shares closed 24 sen or 1.01% higher to RM24.08 on Friday, giving it a market capitalisation of RM2.57 billion. The stock's share price has risen 50.5% so far this year.

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