KUALA LUMPUR: Chin Hin Group Bhd’s subsidiaries are selling RM76.45 million worth of real estate assets to raise cash proceeds which can be channelled towards the group's business operations and to repay bank loans.
The integrated builders conglomerate said these entail a disposal of entire equity interest in Ace Logistics Sdn Bhd to PP Chin Hin Realty Sdn Bhd by its wholly-owned subsidiary Metex Steel Sdn Bhd for RM20.8 million and the disposal of properties by PP Chin Hin Sdn Bhd to Midas Signature Sdn Bhd for RM55.65 million cash.
The disposals include 11 units of shop offices together with 89 units of car parks in Kuala Lumpur, one unit of factory in Shah Alam and 23 units of shop offices in Alor Setar, it said in a filing with Bursa Malaysia today.
"The proceeds raised from the proposed disposals will enable the group to part repay its bank borrowings which will reduce the group's gearing level and improve the group's financial position with enhancement to its current ratio.
"It will also improve the group's cash flow due to the lower outflow from the repayment of interest expense," it added.
The company said upon completion of the proposed disposals, it is expected that the group will recognise an estimated one-off net gain of RM12.36 million and recurrent of annual net savings of RM0.15 million. - BERNAMA