PETALING JAYA: Ge-Shen Corp Bhd
has entered into a binding term sheet with Plastico Sdn Bhd for the proposed disposal of five properties in Taman Gembira, Johor Baru, for an aggregate cash consideration of RM35mil.
In a filing with Bursa Malaysia, Ge-Shen said the freehold properties comprised offices, warehouses and factories.
“The disposal is in the best interest of Ge-Shen and its subsidiaries in view of the proceeds which will be utilised to repay bank borrowings and finance the group’s working capital.
“The proceeds is expected to contribute positively to the future cash flow of the group and the repayment of the bank borrowings will enable Ge-Shen to lower its gearing ratio,” it said.
The exercise would also allow Ge-Shen to streamline its operations by improving efficiency and optimise the utilisation of assets owned by the group, it added.
