Pantech Global proposes RM31.73m sale of Klang freehold site after plan review
Pantech Global Bhd proposes to sell a 10.01-acre freehold site in Klang for RM31.73 million in cash, following a review of its expansion plans and prolonged planning timelines. The group expects a net gain of about RM769,000 from the disposal, with proceeds to fund its replacement land and working c
PETALING JAYA (Oct 14) — Pantech Global Bhd has proposed to sell a 10.01-acre freehold site in Klang for RM31.73 million in cash, following a review of its expansion plans and the prolonged timeframe required for the site's planning and development approvals.
In a Bursa Malaysia filing on Tuesday (Oct 13), the group said its wholly owned subsidiary, Pantech Steel Industries Sdn Bhd (PSI), had signed a sale and purchase agreement with property developer Veltrix Land Sdn Bhd for the disposal. The vacant agricultural land measures approximately 435,874 sq ft and is held under Geran 45734, Lot 6078, in Mukim Kapar, Klang, Selangor. It was originally intended for a new factory and corporate head office, known as Klang Factory 2.
PSI subsequently acquired another freehold parcel in Kapar from Uptown Promenade Sdn Bhd under its revised expansion plans, as announced on Aug 15, 2025. Given the time required to obtain planning approval for the original site, the board considered it commercially appropriate to sell the property rather than continue holding it pending development.
The group said the proposed disposal would release capital tied up in the property for its ongoing development and operational requirements. Pantech Global intends to allocate RM25.31 million of the proceeds to reimburse the capital outlay incurred for the replacement land, with the remaining RM6.42 million earmarked for working capital for PSI and the group.
PSI signed the agreement to acquire the original site on Dec 23, 2024, and completed the acquisition on April 2, 2025. The purchase consideration was RM28.13 million, while the total investment cost, including stamp duty and legal and professional fees, was RM29.79 million. The group expects a net pro forma gain of approximately RM769,000 from the proposed disposal, after deducting the property's net book value of RM29.789 million, estimated disposal expenses of RM800,000 and estimated real property gains tax of RM373,000.
The disposal price was negotiated on a willing-buyer, willing-seller basis, taking into account prevailing market conditions. PSI did not commission an independent valuation before signing the agreement. Veltrix Land, formerly known as Aconnex Sdn Bhd, is principally involved in property development. Its directors and shareholders are Cheok Chin Hong and Ong Kah Hoe. The filing states that the purchaser is unrelated to Pantech Global, PSI, their directors, major shareholders and connected persons.
The proposed disposal does not require Pantech Global shareholders' approval. The land transfer is subject to state authority or other relevant approvals or consent, if required. Although obtaining planning permission is not a condition precedent to the agreement, the group identified a risk that failure by the purchaser to secure it could affect its ability to complete the transaction. If the purchaser consequently defaults, PSI would be entitled to forfeit the 10% deposit, while the group would retain the property. Barring unforeseen circumstances and subject to relevant approvals, Pantech Global expects the disposal to be completed by the first quarter of 2027.
