Tien Wah Press sells printing assets

PETALING JAYA: Tien Wah Press Holdings Bhd (TWP) is expected to register a gain of RM843,013 from the proposed disposal of its printing assets in Malaysia.

The company announced yesterday its proposal to sell its printing assets in Malaysia to its major shareholder for RM1.29mil cash as it shifts production volume to Vietnam and Indonesia.

TWP said its wholly-owned subsidiary, Tien Wah Press (Malaya) Sdn Bhd (TWPM), had entered into an asset sale agreement with Paper Base Converting Sdn Bhd (PBC), an indirect wholly-owned subsidiary of New Toyo International Holdings Ltd, which, in turn, is a major shareholder of TWP, for the proposed disposal of machinery held by TWPM to PBC.

This is in line with the group’s re-organisation of its production footprint, which is part of a normal routine operational function to improve the group’s strategic positioning to service customers and reduce operating cost over the longer term.

“The disposal will realise the value of some of the assets which are no longer used or required by the group,” TWP said in a filing with Bursa Malaysia.

TWP said it planned to use the proceeds from the disposal of machinery as working capital.

“The expected gain arising from the disposal is RM843mil,” it said.

The disposal is targeted for completion by the end of March.