Lion Industries via Amsteel Mills and Gelora Berkat has entered into the sales and purchase agreement to dispose of two parcels of land with Unichamp Mineral for a total cash consideration of RMM92 million.
The disposal of land 1 is for a cash consideration of RM67.96 million, and the second land is for RM24.07 million. Subject to the terms and conditions of the SPAs, the Purchaser has agreed to purchase and the Vendors have agreed to sell the Sale Lands on an “as is where is” basis, free from encumbrances (save for the existing leases on Sale Land 1) and with legal possession for the Sale Lands, for the Disposal Consideration.
The Sale Lands are located within Kawasan Perindustrian Olak Lempit, an industrial area that lies approximately 18 kilometres east of the town of Banting, Selangor, and 75 kilometres southwest of the City Centre of Kuala Lumpur.
The company said intends to utilise the proceeds from the Disposal Consideration for working capital amounting to RM69.80 million for payment of the Group’s creditors, defray its day-to-day administrative and operating expenses such as purchases of raw materials and other operating expenses such as rental and utilities, and estimated expenses arising from the proposed disposals amounting to RM22.23 million.
The rationale for the disposal was its review of portfolio of assets and businesses to strengthen its financial position. As part of the Group’s strategy to unlock the value and monetise its non-core assets, the Group has identified the Sale Lands for disposal. The group added the it was also to unlock and realise its investment in the Sale Lands at a pro forma net gain on disposal of RM57.10 million, which in turn will provide the Group with additional financial resources to fund its working capital.
