KUALA LUMPUR: LKL International Bhd is selling its freehold land in Seri Kembangan, Selangor, to 8 Food Avenue Sdn Bhd (Avenue) for RM6.9 million.

The company through its wholly-owned subsidiary, LKL Advance Metaltech Sdn Bhd (LKLAM) entered into a sale and purchase agreement (SPA) with Avenue on Wednesday for the proposed disposal.

"The proposed disposal of the property which has remained unused, is a strategic move to unlock its value and generate surplus cash. 

"By reallocating these funds toward working capital and potential investments, the company aims to strengthen its liquidity position and support its core business activities, ensuring a more efficient allocation of resources and fostering the growth and development of its operations," it said  in its filing with Bursa Malaysia today. 

LKL said that the disposal consideration was determined on a "willing buyer, willing seller basis" through negotiations between LKLAM and Avenue, taking into account the highest price offered by various potential buyers.

"The net proceeds after deducting all fees and expenses related to the proposed disposal will be used for financing working capital and/or investments, and utilised within 12 months from the completion of the transaction," it added.