Komarkcorp seeks shareholders' nod for RM40 million Cheras property sale
Komarkcorp Bhd is seeking shareholders' approval to sell a freehold industrial property in Taman Cheras Jaya, Selangor, to QM Print Sdn Bhd for RM40 million. The company plans to use the proceeds for working capital and debt repayment, despite an estimated net loss of RM3.82 million after expenses.
Komarkcorp Bhd is seeking shareholders’ approval to sell its freehold industrial property in Taman Cheras Jaya, Selangor, to QM Print Sdn Bhd for RM40 million cash. The proposed disposal by wholly-owned subsidiary Komark International (M) Sdn Bhd will be tabled at an extraordinary general meeting (EGM) on Dec 3, according to a circular filed with Bursa Malaysia on Friday (Nov 13).
The transaction was first announced on July 31, when the parties signed a conditional sale and purchase agreement (SPA). A supplemental agreement was signed on Aug 20 to amend certain terms. The property comprises a double-storey detached factory with an adjoining three-storey office building at Lot 132, Jalan 16/1, Taman Cheras Jaya, Cheras, with land-title particulars GM 6175, Lot 46730, in Sungai Balak, Pekan Kajang, Ulu Langat district.
It occupies approximately 13,761 sq m (148,123 sq ft) of land and has a total gross floor area of approximately 15,935 sq m (171,524 sq ft). The property is approximately 25 years old and is entirely occupied by the group for factory, warehouse and office operations. The RM40 million consideration was agreed on a willing-buyer, willing-seller basis, reflecting an independent valuation by Laurelcap Sdn Bhd as at July 9, 2026.
Against an audited net book value of RM38.62 million as at June 30, 2026, the disposal would generate a pro forma gain of approximately RM1.38 million before expenses. However, estimated disposal expenses of RM5.2 million — including RM3.4 million in real property gains tax, RM1.7 million in professional fees and agency commission, and RM100,000 in incidental costs — would result in a net pro forma loss of approximately RM3.82 million. Komarkcorp said the expected benefits of releasing cash, reducing borrowings and lowering property-related operating costs outweighed the one-off loss.
The group said the Cheras property exceeds its current operational requirements, leaving some areas underutilised while it continues to bear maintenance and operating costs. It plans to relocate factory and warehouse operations to its existing facility in Taman Perindustrian Sri Plentong, Masai, Johor, which has a built-up area of approximately 1,347 sq m (14,500 sq ft). Office operations will remain in the Klang Valley, with premises identified in Balakong, Selangor, and tenancy arrangements being finalised; annual rent is estimated at RM180,000.
Of the RM40 million proceeds, Komarkcorp intends to allocate RM31.6 million for working capital, RM3.2 million to repay bank borrowings and RM5.2 million for disposal expenses. The borrowing repayment is expected to generate annual interest savings of approximately RM158,000, based on an interest rate of 4.95 per cent as at Oct 30. A 10 per cent deposit totalling RM4 million has been paid, including RM1.2 million remitted to the Inland Revenue Board towards estimated real property gains tax.
The EGM will be held at the Cheras property on Dec 3 at 11.30am, or immediately after the company’s annual general meeting scheduled for 10.30am at the same venue. The board has recommended that shareholders vote in favour. Subject to approvals, completion is expected in the first quarter of 2027.
