KUALA LUMPUR (Dec 20): LKL International Bhd through its wholly-owned subsidiary LKL Advance Metaltech Sdn Bhd (LKLAM), is selling a piece of freehold land in Seri Kembangan, Selangor, to 8 Food Avenue Sdn Bhd (Avenue) for RM6.9 million.

In a bourse filing, the medical and healthcare bed manufacturer announced that LKLAM entered into a sale and purchase agreement (SPA) with Avenue on Wednesday for the proposed disposal.

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 group said that 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.

By reallocating these funds towards working capital and potential investments, LKL 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.

Based on its financial statements for the third quarter ended Sept 30, 2023, the group's working capital ratio stood at 3.91.

Shares in LKL settled 0.5 sen or 2.56% lower at 19 sen, giving the group a market capitalisation of RM72.06 million.

Since the beginning of the year, the stock has fallen by 34.21%.

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