A filing with Bursa Malaysia today said Puncak Niaga has proposed to sell Lot 7093 to AGSB for RM98.62 million and Lot 7095 to AG1B for RM106.32 million, while its wholly-owned subsidiary Puncak Niaga Management Services Sdn Bhd will sell Lot 7094 to AGSB for RM101.12 million.

The treated water supplier intends to use the proceeds over 53 months to repay bank borrowings, future investments, working capital, expenses incurred for the proposed disposals as well as taxes, the filing said.

The exercise is in line with the group’s strategy to monetise the land as part of a broader thrust of sustainable value creation for shareholders.

The exercise is expected to be completed by the first quarter of 2028.

The group is expected to record a net loss of approximately RM22.4 million from the exercise, or 0.05 sen per share for the current financial year ending Dec 31, 2023.

The proposed disposals are not expected to have any material effect on the net assets per share and gearing ratio of the group for the current financial year ending Dec 31, it said.