KUALA LUMPUR, Sept 29 — MSM Malaysia Holdings Bhd (MSM) has completed the disposal of the entire equity interest held in MSM Perlis Sdn Bhd (MSM Perlis) to FGV Integrated Farming Holdings Sdn Bhd (FGVIF) for an initial disposal consideration of RM175 million.
This is following the green light received from shareholders during the extraordinary general meeting on September 15, 2021, it said in a statement today.
Group chief executive officer Syed Feizal Syed Mohammad said the disposal is estimated to result in a gain of RM91.6 million which would be utilised to pare down borrowings, enhance cash position and further strengthen the company’s balance sheet.
“It is a timely move as MSM has been consistent in its strategic plan in monetisation of non-core assets as part of the turnaround acceleration while staging for better performance in financial year 2022,” he said.
MSM said the cessation of MSM Perlis refining operations on June 30, 2020 resulted in up to 200,000 tonnes of production volume consolidated in MSM Johor and MSM Prai, giving better efficiency and lowering production costs.
Meanwhile, MSM said it remained on track to achieve up to 65 per cent capacity utilisation factor (UF) this year with MSM Prai and MSM Johor reaching UF of 80 per cent and 50 per cent respectively by end of the year. — Bernama
