Ge-Shen to dispose of properties for RM35mil

PETALING JAYA: Ge-Shen Corp Bhd has entered into a binding term sheet with Plastico Sdn Bhd for the proposed disposal of five properties in Taman Gembira, Johor Baru, for an aggregate cash consideration of RM35mil.

In a filing with Bursa Malaysia, Ge-Shen said the properties, which are located on freehold land, comprise offices, warehouses and factories.

“The board is of the opinion that the disposal is in the best interest of Ge-Shen and its subsidiaries in view that the proceeds raised will be utilised to repay the bank borrowings and finance the group’s working capital.

“The utilisation of the said proceeds is expected to contribute positively to the future cash flow of the group when it materialises and the repayment of the bank borrowings will enable Ge-Shen to lower down its gearing ratio.

The company added that the exercise will allow Ge-Shen to streamline its operations by improving efficiency and optimise the utilisation of the assets owned by the group