Sunzen Biotech to sell Klang asset to save cost

Sunzen Biotech to sell Klang asset to save cost
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KUALA LUMPUR (Nov 11): Sunzen Biotech Bhd is disposing of a 4,047 sq metre freehold land in Klang that houses a three-storey factory building, for RM14.2 million. 

The group said in a filing today that it is selling the property acquired in January last year as a cost-saving measure. 

The disposal, it said, will enable the group to have a monthly cost saving of RM50,000 arising from term loan interest and operating costs.  

Sunzen said the vendor, Ingredient Plus Properties Sdn Bhd, is principally engaged in real estate activities.  

The group said it plans to relocate back its corporate office to its previous office cum factory building located in Kota Kemuning, Shah Alam.  

The proceeds from the disposal is expected to be used mainly to repay a term loan (RM9.83 million) and for working capital (RM3.31 million). 

The disposal, the group added, will pare down its bank borrowings after the repayment of the term loan, which will reduce to RM5.71 million from RM15.58 million. The group’s net gearing ratio is expected to reduce to 0.07 times from 0.17 times. 
 
Sunzen’s share price gained half a sen or 3.23% to 16 sen today, valuing it at RM84.60 million. Some 1.24 million shares were traded. 

S Kanagaraju