KUALA LUMPUR (Aug 4): Ingenieur Gudang Bhd, formerly known as Dynaciate Group Bhd, is selling two parcels of leasehold industrial land with buildings back to former shareholder Dynaciate Engineering Sdn Bhd (DESB) for RM26 million.

The sale proceeds, according to the filing with Bursa Malaysia, will be mainly used to repay debts that the company owes to DESB.

Ingenieur said its wholly-owned subsidiary Ingenieur EPCM Sdn Bhd has entered into a conditional sale and purchase agreement with DESB for the divestments.

One of the industrial properties located in Plentong, Johor Bahru, is priced at RM16.6 million while the other is in Sungai Karang, Kuantan, which the group is selling for RM9.4 million.

Ingenieur said RM12.3 million of the disposal consideration will be offset against debts owed by Ingenieur EPCM to DESB.

For the remaining RM13.7 million proceeds from the disposal, Ingenieur plans to utilise 67% of it for repayment of bank borrowings, 31% for general working capital and the remainder for estimated expenses incurred in the disposals.

The group expects to complete the disposals by the fourth quarter of this year, which will pare down its gearing ratio to 0.12 times from 0.29 times.

Ingenieur said these two properties were bought in October 2020 for RM25 million from DESB, which was the major shareholder of Ingenieur.

Currently, DESB has ceased to be a major shareholder in Ingenieur; hence the proposed disposal is not regarded as related party transactions.

Being the previous owner of these industrial properties, which are purpose-built for building material fabrication works, DESB is desirous to buyback these two properties, said Ingenieur.
 
Shares of Ingenieur gained one sen to 11.5 sen per share, giving it a market capitalisation of RM113.59 million.