Kossan Rubber to sell Hulu Langat land for higher price in new deal

  • Corporate News
  • Thursday, 02 Apr 2020

KUALA LUMPUR: Kossan Rubber Industries Bhd has agreed to sell its land in Kuala Langat, Selangor to a new buyer at a higher price, less than three weeks after it scrapped a deal with a paper and pulp producer.

The glove maker, in a filing with Bursa Malaysia today, said it had entered into a deal on April 1 to sell the vacant industrial land, measuring about 390,397 sq meters to Best Eternity Recycle Technology Sdn Bhd (BERT) for RM153.38mil.

BERT is also a paper, pulp and cardboard producer.

On March 17, Kossan Rubber announced it had terminated a deal with another producer LianSheng Paper (M) Sdn Bhd to dispose the land for RM147.7mil.

This was due the "non-fulfillment of the terms and conditions as stipulated in the sales and purchase agreement" in the announcement dated January 16.

Kossan Rubber said today that the disposal would enable the company to unlock the value of the land and raise funds for the development of its 824 acres landbank in Bidor, Perak.

The company plans to consolidate and centralise its future glove manufacturing business in Bidor. Kossan Rubber had acquire the Kuala Langat land for RM96mil in August, 2017. Its current market value was estimated at RM145mil.

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