KUALA LUMPUR (May 10): Pensonic Holdings Bhd is selling land in Seberang Perai Tengah, Penang, on which a mill is being built to pulp maker HZ Green Pulp Sdn Bhd (HZGP) for RM15.8 million, in the rationalization of its assets to unlock and realize the greatest value from its land assets, in order to improve the overall financial position of the group.
In a stock market filing, Pensonic said its wholly-owned subsidiary Pensia Electronic Sdn Bhd (PESB) signed a sale and purchase agreement (SPA) with HZGP on Monday May 9 to dispose of the land, which measures 1.2 ha, with the structures therein, including an office building and two two-storey warehouses, a guardhouse and ancillary buildings.
The transaction stems from an option granted to the buyer to purchase the property through an option agreement and supplemental agreement dated February 23, 2021 and May 9, 2022, respectively, Pensonic said. The land has a 60-year lease expiring on January 13, 2054.
The electrical appliance group said it plans to complete the disposal by this year, pending consent from Penang state authorities.
The disposal will yield Pensonic a one-time gain of RM10.94 million, after deducting the book value of the property and related expenses of RM3.76 million, an estimated provision for income tax / Real Estate Gains Tax (RPGT) of RM1 million, and estimated expenses related to the proposed disposal of RM100,000.
The group will also see a reduction in its total borrowings to RM76.07 million from RM81.6 million, while its debt ratio will drop from 0.45 to 0.41 times.
Pensonic plans to spend RM5.5 million of the proceeds to repay all of its outstanding borrowings from Hong Leong Bank Bhd. It will set aside RM10.2 million for working capital, including the estimated provision for income tax/RPGT.
Shares of Pensonic came in at half the sen or 0.9% higher at 58 sen on Monday, valuing the group at RM75.2 million.
Edited by Tan Choe Choe.
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