TSH Resources which announced in December that its 90%-owned subsidiary, BCAP had entered into heads of agreement
with PT Kawasan Industri Kalimantan Indonesia and PT Kalimantan Industrial Park Indonesia in relation to the proposed land disposal for approximately RM711.6 millionn.
The plots of land are:
i) 2 plots of land situated at Tanah Kuning Village, East Tanjung Palas District, Bulungan Regency, North Kalimantan, covering a total area of 3,829.27 hectares;
(ii) 5 plots of land situated at Mangkupadi Village, East Tanjung Palas District, Bulungan Regency, North Kalimantan, covering a total area of 9,385.63 hectares; and
(iii) plots of land situated at Tanah Kuning Village and Mangkupadi Village that have been previously acquired by the Seller from individuals landowners but have not yet been certified and registered in the National Land Agency Indonesia
TSH adds that the proposed disposal is in line with its strategy of evaluating its portfolio of investments and where possible seeking opportunities to unlock and realise the value of its investments for the benefit of the shareholders of TSH. Based on the disposal consideration and the audited NBV of the Sale Land of approximately RM271.16 million as of the end of December 2020, the Group is expected to record a proforma gain on disposal of approximately RM400.31 million. The Proposed Disposal will enable the Group to raise cash proceeds amounting to approximately RM711.66 million for its partial repayment of interest-bearing borrowings. In addition, it will lower the Group’s gearing level and improve the ability of the Group to borrow further should new business opportunities arise, and improve the Group’s cash flow position due to lower
interest expense.
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