BBR Holdings’ subsidiary to dispose of a freehold property and factory building located in Johor, Malaysia for a total consideration of RM25.3 million ($7.98 million).
BBR Construction Systems entered into a conditional sale and purchase agreement with My Semi Precision to sell a freehold property containing an area measuring approximately 15,800 square metres (sqm) and a factory building at Senai, Johor Bahru, Malaysia.
The market value of the property was about $5.9 million as at Dec 31, 2024. The company expects to receive net proceeds of approximately RM22 million, and intends to utilise the proceeds to repay the outstanding loan and mortgage over the property and as general working capital.
The group believes that the disposal of the property will allow it to realise the full value of the property, which is currently charged to a financial institution as security for the loan secured in 2023 to finance the purchase of the property.
BBR also cites that business conditions have changed and that the property has been and is currently underutilised by the group, in which continued underutilisation will continue to result in costs incurred.
The pro forma financial effects from the proposed disposal are an increase of net asset value (NAV) per share to 39.55 cents, and earnings per share increasing to 7.19 cents.
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BBR Holdings closed at 0.1 cents lower or 0.529% down at 18.8 cents on Nov 13.
