WTK sells Perai industrial properties for RM38m in asset-light shift
WTK Holdings has agreed to sell three leasehold industrial properties in Perai, Penang, to NationGate System for RM38 million cash. The disposal, which follows a fire at its manufacturing facility, will support its shift towards an asset-light tapes business.
PETALING JAYA (Oct 1): WTK Holdings Bhd has agreed to sell three leasehold industrial properties in Perai, Penang, to NationGate System Sdn Bhd for RM38 million cash as it shifts its tapes business towards an asset-light model.
In a Bursa Malaysia filing on Wednesday (Sept 30), WTK said its wholly-owned subsidiary Loytape Industries Sdn Bhd signed a sale and purchase agreement for the properties in Seberang Perai Tengah. The group said a fire at its Seberang Perai manufacturing facility in early 2025 accelerated its move away from tape manufacturing towards converting and distribution activities, which require a smaller physical footprint.
The properties comprise 265,003 sq ft, or about 6.08 acres, of industrial land in Kawasan Perusahaan Perai, with factory and other buildings on two of the three parcels. Lot 692, held under Pajakan Negeri No 1336, measures 136,666 sq ft and contains a single-storey detached factory, a one-and-a-half-storey detached factory and ancillary buildings, with a stated gross floor area of 90,325 sq ft. Its lease expires on Nov 7, 2045. Lot 682, held under Pajakan Negeri No 1335, comprises 84,736 sq ft of vacant industrial land, with its lease expiring on Nov 27, 2069. Lot 2806, held under Pajakan Negeri No 1337, measures 43,601 sq ft and houses a single-storey office building, a scrap-area building and ancillary structures. Its lease expires on Aug 22, 2072.
The RM38 million consideration represents a 15.5 per cent premium to the properties’ combined market value of RM32.9 million, as assessed by Azmi & Co (Kedah) Sdn Bhd. In its disposal-gain table, WTK disclosed an estimated net pro forma gain of RM30.46 million, calculated after deducting the properties’ audited net carrying amount of RM4.95 million as at Dec 31, 2025, and estimated real property gains tax of RM2.58 million.
The group earmarked RM33.92 million of the proceeds for working capital within 24 months. Its indicative allocation comprises RM15 million for raw materials and inventory purchases, RM5 million for staff salaries, RM2 million for relocation expenses and RM11.92 million for deposits with financial institutions. The remaining proceeds will cover estimated real property gains tax of RM2.58 million and disposal-related expenses of RM1.5 million.
NationGate System is principally involved in manufacturing, designing and dealing in electronic components, as well as providing warehousing services. Under the agreement, a RM3.8 million deposit is payable upon signing, including a RM1.14 million retention sum for real property gains tax. The RM34.2 million balance is due within three months after the agreement becomes unconditional, with an automatic one-month extension subject to 6 per cent annual interest on the outstanding balance.
Completion requires transfer consent from the Penang state authority and, where applicable, the Penang Development Corporation, or confirmation from the corporation that its consent is unnecessary. The sale of all three properties must be completed simultaneously. WTK said shareholders’ approval is not required. The disposal is expected to be completed in the second quarter of 2027, subject to the required approvals and barring unforeseen circumstances.
