CCM to see RM1.1m gain from disposal of Labu land

KUALA LUMPUR (September 13): Chemical Co of Malaysia Bhd (CCM) said today it is expected to net a gain of RM1.1 million from the disposal of a 73,705 sq m piece of land in Labu, Negeri Sembilan for RM21.5 million.

In a filing with Bursa Malaysia today, CCM said its gearing ratio of 1.67 times as at Dec 31, 2017 is also expected to reduce to 1.58 times by Dec 31, 2018 as the proceeds from the proposed disposal will be used to pare down the group’s borrowing.

On Sept 7, CCM announced that it had entered into a sale and purchase agreement with Rock Link Sdn Bhd for the proposed disposal.

Since early 2017, CCM had embarked on various initiatives to de-gear the group and to ascribe proper valuation of its businesses/ assets. The management had identified the Labu property as a non-core asset.

The disposal consideration represented an 8.6% premium to the property's audited net book value of RM19.8 million as at Dec 31, 2017.

Barring any unforeseen circumstances, the proposed disposal of the property is expected to be completed by the first quarter of 2019.

CCM shares ended the morning session down one sen or 0.52% at RM1.93 today, with 80,600 shares done, bringing a market capitalisation of RM323.4 million. — theedgemarkets.com

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