KUALA LUMPUR (April 11): Jentayu Sustainables Bhd (formerly known as Ipmuda Bhd) has proposed to sell a parcel of leasehold redevelopment industrial land with warehouses and offices in Petaling Jaya for RM19.99 million cash.

Jentayu Sustainables had on Thursday (April 7) entered into a conditional Sale and Purchase Agreement (SPA) with Beacon ACM Sdn Bhd for the disposal of the property, according to its bourse filing on Friday.

The property is located on Jalan Penchala and is accessible from Kuala Lumpur city centre via Jalan Syed Putra, the Federal Highway and Jalan Templer.

According to the company, the land is almost trapezoidal in shape and measures 2.012 acres, with a direct frontage onto Jalan Penchala to its immediate northeast while its remaining boundaries border neighbouring lots.

Besides containing two single-storey warehouses and a single-storey building currently used as an office, there is also a guard house and two temporary sheds on the premises.

According to Jentayu Sustainables, the property is presently charged to Bank Islam Malaysia Bhd (BIMB) as securitiy for a restructring facility, with the outstanding sum owed to BIMB of approximately RM12.5 million as on April 1.

On Oct 29, Jentayu Sustainables had entered into a Tawarruq financing arrangement with BIMB to restructure the existing facilities of Jentayu Sustainables and its wholly-owned subsidiaries, Ipmuda Selatan Sdn Bhd and Ipmuda Utara Sdn Bhd.

Jentayu Sustainables noted the proposed disposal forms part of the company’s asset rationalisation exercise, with proceeds to be used as working capital for its day-to-day operating activities.

The company is expected to record a one-off net gain on disposal of RM16.06 million arising from the proposed disposal, following the disposal consideration arrived at on a willing-buyer willing-seller basis.

The proposed disposal is also expected to be completed no later than the third quarter of 2022, subject to approval of the shareholders of the company at an extraordinary general meeting (EGM) to be convened; and approval of any other relevant authorities or parties, if required.

Jentayu Sustainables’ share price settled for the day 3% or one and a half sen higher at 51.5 sen, bringing it a market value of RM166.47 million.

Source: EdgeProp, April 11, 2022