London Biscuits sells assets to Mamee-Double Decker

  • Corporate News
  • Wednesday, 06 May 2020

KUALA LUMPUR (Bernama) -- London Biscuits Bhd (LBB) is disposing of RM70 million worth of assets to Pacific Petcare Sdn Bhd as part of the company’s liquidation and to generate cash for the ultimate distribution to its creditors.

In a filing with Bursa Malaysia today, LBB said it has entered into an asset sale agreement with Pacific Petcare and Mamee-Double Decker (M) Sdn Bhd (as guarantor) for the purposes.

Pacific Petcare is a wholly owned subsidiary of Mamee.

The assets to be disposed include seven parcels of freehold industrial land in Plentong, Johor Bahru, together with buildings erected thereon, plant and machinery located within the premises, as well as intellectual property rights comprising certain trademarks and all goodwill associated with such trademarks.

"The target assets to be disposed of under the proposed disposal are only part of, and do not form all of the assets owned by the company.

"The remaining assets of the company are expected to be realised in the future as part of the liquidation of LBB,” it said.

Barring any unforeseen circumstances, LBB expects the proposed disposal to be completed by the third quarter of this year, and the time frame for the full utilisation of the proceeds is likely to be within six months from the completion of the exercise.

"The proposed disposal is expected to result in the decrease of the company’s consolidated earnings and earnings per share for the financial year ending Sept 30, 2020, as the company expects to realise a loss arising from the proposed disposal,” it said.

The target assets were originally acquired at about RM195 million.
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