Sarawak Cable sells property in Klang to Supermax for RM65m

KUALA LUMPUR (July 18): Sarawak Cable Bhd is selling a piece of freehold land together with industrial premises in Klang to Supermax Corp Bhd for RM65 million.

The group said its wholly-owned subsidiary, Leader Cable Industry Bhd (LCIB), signed the deal with Supermax’s wholly-owned unit Maxter Glove Manufacturing Sdn Bhd (MGMSB).

The industrial premises comprises a single-storey detached factory attached with a four-storey extra high voltage tower, a three-storey detached office building, a single-storey canteen and other ancillary buildings.

Sarawak Cable noted that the industrial premises were acquired by LCIB back in May 2012 for RM31 million.

“The proposed disposal is undertaken by the group to strengthen its liquidity and cash flow position by raising cash proceeds mainly for the group’s working capital requirements for its core business segments with growth opportunities,” said Sarawak Cable.

From the total proceeds, 92% or RM60 million will be used as working capital for the group to finance its day-to-day operations, while the remaining RM5 million will be for its estimated expenses for the proposed disposal.

The group said the exercise would enhance the group’s earnings with an estimated net gain on disposal of RM18.7 million.

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