SCGM plans sale of Johor properties to reduce debts

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KUALA LUMPUR (July 4): A wholly-owned unit of SCGM Bhd plans to dispose of three of its properties in Johor to raise funds to pare down its bank borrowings.

In a bourse filing, SCGM said Lee Soon Seng Plastic Industries Sdn Bhd is looking for prospective buyers for the properties in Kulai, Johor, but did not specify the total price of the two freehold plots and one leasehold land that are on sale. The properties comprise industrial and agricultural land, as well as a factory and warehouse.

SCGM said Lee Soon Seng is in the process of moving into a new factory measuring 658,365 square feet in Kulai, which has the capacity to cater for future expansion. It will make an announcement once a prospective buyer has been identified.

SCGM shares closed down two sen or 1.44% to RM1.37 for a market capitalisation of RM264.08 million.