The company is selling land and a factory building for RM23million ($5.3/€4.7 million)
KLSE Screener reported that Jadi Imaging Holdings Bhd is selling the property after entering into a sale and purchase agreement with Tropical Fairyland
and Sdn Bhd which was filed with Bursa Malaysia 28 June.
A spokesperson at Jadi Imaging said: “The proposed sale and leaseback entails the disposal of the said property for the sale consideration to be satisfied entirely in cash.”
The proceeds from the sale will be used for the repayment of bank loans, working capital, and costs of the sale and the company commented: “The proposed disposal will enable Jadi Group to generate immediate cash flow and repay part of the group’s bank borrowings, which will reduce the gearing level of the group.
“This will also result in interest savings and provide financial flexibility to the group to secure additional borrowings should new investment opportunities arise.”
The sale is expected to be completed by Q4 2017.