Olympia Industries sells JB land for RM80m to pare debts

KUALA LUMPUR: Olympia Industries Bhd is disposing of 15.25 ha of freehold land in Johor Bahru for RM80 million cash to Adawan Development Sdn Bhd in a move to reduce its debts.

It said on Friday, June 10 the piece of land was acquired in December 1989 and is an unconverted development land zoned for residential and commercial use. It is about 5km north-east of the Johor Bahru city centre.

"The land is one of several earmarked assets which have been identified as a significant divestment asset subsequent to the implementation of Olympia Industries's restructuring scheme to meet its obligations under the said scheme," it said.

The company said the proposed disposal was to comply with the terms of the restructuring scheme, specifically to substantially reduce the debts owing to the primary holders of 2007/2013 six-year irredeemable convertible bonds which were the original lenders under the scheme.

Olympia Industries said the consideration for the proposed disposal was a willing-buyer willing-seller basis and based on the valuation carried out by Messrs CH Williams, Talhar & Wong on June 3.

CH Williams, the designated valuer of the lenders, had assessed the market value of the land at RM73 million.

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