PETALING JAYA: NTPM Holdings Bhd is expected to make a one-off gain of RM11.2mil from the proposed disposal of its toilet roll manufacturer in Bentong, Pahang.
In its filing with Bursa Malaysia, the consumer goods and paper company said it would be selling its entire 100% stake in NTPM Paper Mill (Bentong) Sdn Bhd (NTPM Bentong) for RM27.5mil cash.
NTPM Holdings’ wholly-owned subsidiary Nibong Tebal Paper Mill Sdn Bhd inked an agreement with XSD International Paper Sdn Bhd for the sale, which included the ownership of all NTPM Bentong’s immovable assets and moveable assets, but excludes all converting machines, office equipment, trademarks and liabilities.
The company said NTPM Bentong had incurred losses continuously and had little prospect to be turned around in near future.
“The proposed disposal will allow the company to rationalise and streamline the group’s activities with a clear focus on maximising returns. It will enable NTPM to realise its investments in NTPM Bentong, thus enabling NTPM to use the proceeds from the proposed disposal for the working capital of its remaining business, ” it added.
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