KUALA LUMPUR (July 14): Hextar Global Bhd announced that its wholly-owned subsidiary Halex Link Sdn Bhd (HLSB) completed the sale of its industrial freehold land in Johor to Plato Chemical (M) Sdn Bhd (PCSB) yesterday.

The sale, worth RM30 million, involved the disposal of a one-storey detached factory, with an annexed two-storey office building, which had a land area of 45,033 sq m and a built-up area of 13,656 sq m in Johor.

In a statement today, the agrochemical maker said the disposal was in line with internal reorganisation — of its production operations — to consolidate two production operation locations into one.

Proceeds from the sale would be used to resolve the bank loan for which the property had been charged as collateral, resulting in estimated annual interest savings of RM1.1 million.

The surplus cash would be used to strengthen the company’s cash resources and for future endeavours, the company said.

The now-vacant property was first acquired by Hextar Global’s wholly-owned subsidiary Halex Woolton (M) Sdn Bhd for RM10.11 million on Oct 2, 2006, and then transferred to Halex Link for RM31 million on June 13, 2017.

Hextar Global, through Halex Link, entered into a sale and purchase agreement (SPA) with Plato Chemical for the industrial land on Oct 21, 2019.

At the noon market break today, shares in Hextar Global were down one sen or 1.56% to 63 sen, giving the company a value of RM508 million. Around 1.7 million shares were transacted.

The counter has rebounded from a low of 49 sen on April 28 this year, while year to date, there has only been a slight drop of 1.6% from 64 sen.

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