PETALING JAYA: Ge-Shen Corp Bhd
will no longer proceed with the sale of five pieces of freehold land in Johor Bahru after its intended buyer, Plastico Sdn Bhd, failed to secure financing to complete the RM35mil deal.
In February this year, Ge-Shen Corp, through its wholly-owned subsidiary Ge-Shen Plastic (M) Sdn Bhd, said it is looking to sell five pieces of freehold land in Johor Bahru, with an aggregate size of 4.61 acres, for RM35mil in cash.
Ge-Shen Plastic inked a binding term sheet with Plastico for the deal.
At that time, Ge-Shen Corp said the RM35mil disposal consideration represents an 8.57% discount to the land's RM38.28mil market value, ascribed by Irhamy Valuers International Sdn Bhd in November 2023. The group has expected to book a pro forma gain of RM14.26mil from the land sale.
Plastico is a precision plastic components and parts manufacturer. Its shareholders comprise Teo Gee Lian with a 55% stake, Too Siau Chen with 30% and Teo Gee Teck with 15%.
The transaction was expected to be completed in the third quarter of this year.
Ge-Shen Corp rationalises that the proposed disposal is in the best interest of the company and the proceeds raised will be utilised to repay the bank borrowings and finance the group’s working capital.
Besides, the proposed disposal is expected to allow the group to streamline its operations by improving efficiency and optimize the utilisation of the assets owned by it.
In August, Ge-Shen Corp said Ge-Shen Plastic had entered into a conditional sale and purchase agreement (SPA) with Plastico.
In a filing with Bursa Malaysia, the group said the SPA was terminated after Plastico failed to secure a loan from a financial institution to settle the RM35mil within the completion period under the SPA, which expired on Dec 3, 2025.
Ge-Shen Corp’s share price closed unchanged at RM1.63.
