CEO Morning Brief

Lion Industries Sells Two Parcels of Land in Banting for RM92 Mil

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Publish date: Tue, 05 Sep 2023, 09:13 AM
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TheEdge CEO Morning Brief

KUALA LUMPUR (Sept 4): Lion Industries Corp Bhd is selling two parcels of land, measuring 26.787 acres in Kawasan Perindustrian Olak Lempit, Banting, for RM92.03 million in cash.

The disposal came after the group scrapped its plan to buy 80 acres of agricultural land in Sepang for RM23 million a month earlier.

Lion Industries said the disposal, which is part of the group’s strategy to divest its non-core assets, will allow the group to realise its investment in the land sold with a pro forma net gain of RM57.10 million. This in turn will provide the group with additional financial resources to fund its working capital.

The group had signed two conditional share and purchase agreements with Unichamp Mineral Sdn Bhd, which is engaged in the trading of lime-based products, on Sept 1, according to its filing dated Sept 3.

Lion Industries, via its 99%-owned unit Amsteel Mills Sdn Bhd, is selling 19.781 acres of land to Unichamp Mineral for RM67.96 million, while its wholly owned unit Gelora Berkat Sdn Bhd is disposing of 7.006 acres of land for RM24.07 million.

It plans to utilise the proceeds of RM69.80 million for payment of the group’s creditors, defray its day-to-day administrative and operating expenses such as purchases of raw materials and other operating expenses such as rental and utilities, while RM22.23 million are estimated expenses arising from the proposed disposals.

The proposed disposals are expected to be completed by the first quarter of 2026.

On Monday, shares of Lion Industries were trading down half a sen or 1.32% to 37.5 sen, giving it a market value of RM269.22 million.

Source: TheEdge - 5 Sep 2023

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