PETALING JAYA: Chemical Company of Malaysia Bhd (CCMB) has proposed to dispose of a vacant industrial leasehold land in Seremban, Negri Sembilan measuring 73,705.1 square metres for RM21.5 million. A sale and purchase agreement (SPA) was entered with Rock Link Sdn Bhd (RLSB) for the exercise. The gross proceeds arising from the proposed disposal of the property will be primarily used to pare down borrowings in line with the company’s de-gearing initiatives. About RM20.9 million will be utilised for the repayment of loan and RM600,000 for the real property gain tax. Over the years, CCMB has sought to continuously review its portfolio of assets and businesses to strengthen its balance sheet. As part of its growth strategy, the group continues to pare down its borrowings and improve its gearing in line with its strategy to spur growth of the existing businesses. "The proposed disposal of property is in line with CCMB’s strategy and provides opportunity for the company to unlock the value of the property, which is not gainfully employed, to pare down the company’s borrowings thereby resulting in interest cost savings to the company," it added. The proposed disposal is expected to be completed by the first quarter of 2019.