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Pensonic sells land with factory in Penang to paper pulp maker for RM15.8m

KUALA LUMPUR (May 10): Pensonic Holdings Bhd is selling a piece of land in Seberang Perai Tengah, Penang, that has a factory built on it to paper pulp manufacturer HZ Green Pulp Sdn Bhd (HZGP) for RM15.8 million, as part of its asset rationalisation to unlock and realise the higher value of its landed assets, to improve the group's overall financial position.

In a bourse filing, Pensonic said its wholly-owned Pensia Electronic Sdn Bhd (PESB) has inked a sale and purchase agreement (SPA) with HZGP on Monday (May 9) to dispose of the plot, which measures 1.2ha, together with the structures on it, comprising an office block and two two-storey warehouses, a guard house and ancillary buildings.

The transaction arose from an option granted to the purchaser to buy the property through an option agreement and suplemental agreement dated Feb 23, 2021 and May 9, 2022 respectively, Pensonic said. The land has a 60-year lease expiring on Jan 13, 2054.

The electrical appliances group said it expects to complete the disposal by this year, pending consent from the Penang state authorities.

The disposal will net Pensonic a one-off gain of RM10.94 million, after deducting the carrying value of the property and related expenditure of RM3.76 million, estimated provision for income tax/real property gains tax (RPGT) of RM1 million, and estimated expenses in relation 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 gearing ratio will reduce to 0.41 times from 0.45 times.

Pensonic plans to spend RM5.5 million of the proceeds to retire its entire outstanding borrowings from Hong Leong Bank Bhd. It will set aside RM10.2 million for working capital, inclusive of estimated provision for income tax/RPGT.

Pensonic shares settled half 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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