KUALA LUMPUR: Majuperak Holdings Bhd has entered into a conditional sale and purchase agreement with Alliance Contract Manufacturing Sdn Bhd to dispose two pieces of land in Penang for RM6.38 million and RM6.62 million respectively in cash.

In a filing to the exchange on Dec 28, Majuperak said as an integral part of the debt restructuring of United Chemical Industries Bhd (UCI) which was completed on June 27, 2007, all identifiable and tangible assets including the two pieces of land were transferred to Majuperak as a partial set-off against the inter-company debts due to Majuperak by UCI.

“The transfer of assets were pertinent to facilitate the debt restructuring in that it shall be retained as collateral by MHB for an issuance of RCSLS and has been earmarked for the purpose of redeeming the RCSLS,” Majuperak said.

The RCSLS were issued on June 22, 2007 and matures on June 22, 2010. The net proceeds from the proposed disposal will be used for the redemption of the said RCSLS, settlement of retrenchment benefits for former UCI employees and working capital purposes.

Majuperak said the proposed disposal is expected to be completed by the second quarter of 2010.

The two pieces of land are adjoining leasehold lands with the leases expiring on March 31, 2072 and July 22, 2035 respective. A 29-year-old single-storey detached factory annexed with a two-storey office building currently sits on one tract while the other is vacant land.