Chemical Company of Malaysia to reap RM21.5m gain from land disposal

PETALING JAYA: Chemical Company of Malaysia Bhd's (CCM) proposed disposal of a piece of land in Seremban, Negri Sembilan, to Rock Link Sdn Bhd for RM21.5 million is expected to bring a gain of RM1.1 million.
The company said in a filing with the stock exchange today that the gain is expected after taking into account the real property gain tax from the disposal of the property, which is a piece of vacant industrial leasehold land measuring 73,705.1 square metres.
"In addition, the gearing ratio of CCM is expected to reduce from 1.67 times as at Dec 31, 2017 to 1.58 times by Dec 31, 2018 as the proceeds from the proposed disposal will be used to pare down the company's borrowing," CCM said.
The company announced its intention to dispose of the land in Seremban to Rock Link on Sept 7. CCM said the proposed disposal is in line with its strategy and provides an opportunity for it to unlock the value of the property to pare down the company's borrowings.