JAKS sells factory and land for RM26mil

PETALING JAYA: JAKS Resources Bhd has inked a sale and purchase agreement with Hectare Square Sdn Bhd to dispose of 1.214ha freehold industrial land together with a one-storey factory in Jalan Subang, Selangor, for RM25.9mil.

The construction firm told Bursa Malaysia yesterday that the rationale for the sale was to unlock its capital resources from being tied up as long-term assets and that it wanted to realise the value of the property at a fair market value, apart from enhancing the group’s liquidity as well as strengthen its financial position.

“The proceeds from the sale consideration will be used for repayment of bank borrowings within three months from the date of completion of the proposed disposal. This will result in a gain of about RM13.38mil to JAKS,” the company said.

The sale consideration, accord- ing to JAKS, was arrived at on a “willing buyer-willing seller” basis and on “as-is-where-is” basis, after taking into account the net book value of the property of RM6.88mil as at Dec 31, 2016.

It also considered the indicative market valuation of the property of RM26.40mil as appraised on Aug 30, 2016.

“In arriving on the opinion that the sale consideration is fair and reasonable, the board has taken into consideration the small difference between the sale consideration and market valuation, and that the market valuation was carried out for a different purpose,” JAKS noted.

The sale is not expected to have any material impact in JAKS’ net assets and gearing for the financial year ending Dec 31, 2017.

JAKS’ shares closed unchanged at RM1.28 yesterday.