In a filing to Bursa, the company said the disposal is primarily to reduce its collateralised loan obligation (CLO), due in October next year, as well as other bank borrowings.
The sale proceeds will be utilised to partially repay the amounts outstanding and subsequently reduce the company's gearing.
"Such repayment is expected to result in interest savings of approximately RM2 million," it added.
The proposed disposal is also being undertaken to increase working capital in order to cater for a foreseeable expansion in projects next year, particularly the Glove Unique Reprocessing Unit (GURU), Radio-Frequency Identification Device (RFID) and other projects in the semi-conductor industry.
The company intends to focus on its core competencies, which are the design and manufacturing of standard equipment. -- Bernama
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