KUALA LUMPUR: Kossan Rubber Industries Bhd is selling a vacant piece of freehold industrial land in Kuala Langat, Selangor to a pulp and paper manufacturer for RM147.7mil cash.
The glove maker said proceeds from the proposed disposal will be utilised to hasten the development of its land in Bidor, Perak, where the company is planning to consolidate and centralise all its future business expansion programme.
The company, in a filing with Bursa Malaysia today, said wholly owned unit Ideal Quality Sdn Bhd had on Jan 15 entered into a conditional sale and purchase agreement (SPA) with Liansheng Paper (Malaysia) Sdn. Bhd for the disposal of the vacant freehold industrial land measuring approximately 390,397sq metres in Kuala Langat, Selangor for RM147.7mil cash.
The land was acquired on Aug 30, 2017 for RM95.99mil.
"The proposed disposal provides an opportunity for Kossan to unlock and realize the value of the land, which is currently not economically utilised,' it said.
The company said proceeds from the proposed disposal will be utilised for working capital purposes and to defray expenses including real property gains tax and professional fees.
In March 2018, Kossan had acquired two pieces of leasehold industrial land measuring about 824 acres in Bidor, Perak with a view to consolidate and centralise all future business expansion to this site.
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