Apollo Food sells Johor vacant land for RM34m

• Apollo Food said that it is expected to generate a net gain of RM18.32 million through the disposal, some of which it intends to utilise for working capital, the group wrote in its bourse filing on Tuesday (May 30).

KUALA LUMPUR (May 30): Apollo Food Holdings Bhd’s unit has proposed to dispose of three vacant freehold parcels of land in Johor Bahru, Johor for RM33.87 million to Ha Teng Holdings Sdn Bhd.

Apollo Food said that it is expected to generate a net gain of RM18.32 million through the disposal, some of which it intends to utilise for working capital, the group wrote in its bourse filing on Tuesday (May 30).

“However, the company has yet to determine the proportion of the proceeds to be used for the working capital at this juncture and the net proceeds from the proposed disposal will be placed in interest-bearing accounts with financial institutions in the interim period,” it said.

Apollo said the proposed disposal by its wholly-owned subsidiary Apollo Food Industries (M) Sdn Bhd provides an opportunity to unlock the immediate value of the total 651,362 sq ft of land which are currently not generating any income, as well as to strengthen its liquidity and cash flow position.

The vendor, Apollo Food Industries, is principally in the business of manufacturing compound chocolates, chocolate confectionery products and cakes. The purchaser, Ha Teng, is in the business of wholesale agricultural machinery, equipment and supplies.

Apollo said the proposed disposal is expected to be completed before the end of its financial year ending April 30, 2024 (FY2024).

Shares of Apollo closed four sen or 1% lower at RM3.98, valuing the group at RM318.4 million.