KUALA LUMPUR (Sept 7): Chemical Company of Malaysia Bhd (CCM) is selling a vacant industrial land in Seremban for RM21.5 million, the bulk of which will be used to pare down its borrowings.
CCM said it has signed an agreement to sell the leasehold land, measuring 73,705 sq m, to Rock Link Sdn Bhd and the deal is expected to be completed by the first quarter of 2019.
The land’s original cost of investment was RM9.04 million in December 1994, the group said in a filing with Bursa Malaysia.
CCM will use RM20.9 million from total proceeds for its loan repayment, while the remaining will be for real property gain tax.
“Over the years, CCM has sought to continuously review its portfolio of assets and businesses to strengthen its balance sheet.
“As part of its growth strategy, CCM continues to pare down its borrowings and improve it’s gearing, in line with its strategy to spur growth of its existing businesses,” its filing said.
Shares of CCM closed nine sen or 4.79% higher at RM1.97 today, valuing it at RM328.4 million.