PETALING JAYA: YLI Holdings Bhd
is disposing of a 12,226.252 sq m parcel of leasehold industrial land in Seberang Perai Tengah, Penang for RM18mil to Hong Kuan Metals Recycle Sdn Bhd.
In a filing with Bursa Malaysia, the ductile iron pipes and fittings manufacturer said the disposal would provide YLI group cash for working capital and bring down its gearing ratio and cost of bank borrowings.
“It will improve the financial performance and reserves of YLI,” it said.
The completion of the disposal is subject to, inter-alia, the fulfilment of the terms and conditions set out in the agreement.
“In the event of non-fulfilment of any conditions, it may result in the termination of the agreement and YLI may not be able to enjoy the resultant benefit from the disposal. Saved as disclosed, the board does not foresee any additional risk that the group may be exposed to pursuant to the disposal,” it added.
