KUALA LUMPUR, Oct 2 — JAKS Resources Bhd proposed to dispose of a piece of freehold industrial land measuring approximately 1.21 hectares together with a one-storey factory building to Hectare Square Sdn Bhd for RM25.87 million.
In a filing to Bursa Malaysia today, JAKS said, the sales proceeds would be used to repay bank borrowings within three months from the date of completion, which was expected in the first quarter of calendar year 2018.
“The exercise will be satisfied wholly in cash and does not involve any issuance of new shares in JAKS, and will result in a gain of approximately RM13.38 million to the group,” it said.
JAKS said the exercise would enable the group to unlock capital resources from being tied up as long-term assets and realise the value of the property at a fair market value while enhancing its liquidity and strengthening its financial position.
“The move will not have any effect on the share capital and substantial shareholders’ shareholdings of the company or any material effect in the net assets and gearing of the group for the financial year ending Dec 31, 2017,” it said.
The exercise would not result in JAKS becoming a cash company or a Practice Note 17 company as defined under the Main Market Listing Requirements of Bursa Securities, it said. — Bernama
