KUALA LUMPUR (Sept 26): Jaks Resources Bhd’s wholly-owned subsidiary has proposed to divest a piece of freehold land with one unit of single storey industrial factory, for a total cash consideration of RM22.4 million.
The three-acre land located in Subang Jaya, Selangor, was earmarked as industrial zone.
In a statement to Bursa Malaysia, the pipe manufacturer said its wholly-owned unit Empire Deluxe Sdn Bhd today entered into conditional sale and purchase agreement with Tok Cheng Boon and Ngan Sook Chin, for the sale of the said land.
Jaks Resources said the proposed sale of the land was to ‘realise the investment cost’, as the production levels at the said factory were not being optimised.
It added that the existing steel pipes production line in the Subang Jaya factory, would be moved to other manufacturing facilities in the group.
The firm also said a portion of the proceeds from the proposed disposal would be used to repay bank borrowings and the balance to settle the intercompany outstanding balance.