Pantech Global to dispose of Klang expansion land for RM31.73 million
Regulatory delays prompted the group to buy a replacement site, with the proposed disposal expected to generate a net pro forma gain of RM769,000.
Pantech Global Bhd said its subsidiary has agreed to sell a freehold property of 10 acres in Klang for a cash consideration of RM31.73 million. The buyer is property developer Veltrix Land Sdn Bhd, which signed the agreement with wholly owned Pantech Steel Industries Sdn Bhd.
According to Pantech Global, about RM25.31 million of the proceeds will reimburse spending on replacement land. The remaining RM6.42 million is earmarked for working capital. The group anticipates completion by first-quarter 2027 and expects the disposal to yield a net pro forma gain of RM769,000.
The carbon steel pipe fittings manufacturer had intended to build a factory on the property, but regulatory delays led it to revise its development plans. Pantech Steel acquired the land in December 2024 at a cost of RM29.79 million, including stamp duty as well as legal and professional fees.
In August 2025, Pantech Global bought a different Klang parcel of 4.84 acres for RM29 million from Uptown Promenade Sdn Bhd, a Rhong Khen International Bhd unit. The group said the replacement property will house its corporate headquarters, a production facility and a warehouse by 2028.
Cheok Chin Hong and Ong Kah Hoe own Veltrix Land. Pantech Global ended trading at 62.5 sen after rising one sen or 1.63%, with its market valuation at RM531.25 million.
