TTJ Holdings has announced that it has entered into sale and purchase agreements to divest assets in Johor for RM41.7 million ($13.4 million).
The assets comprise land spanning 4.93 hectares and buildings erected on the property, as well as certain equipment contained in the factory on-site.
TTJ had previously, on Mar 28, announced that it had gotten a waiver for the transaction from the SGX-ST with regard to compliance with Listing Rule 1014(2) and as such, shareholders’ approval is not required.
The site was previously used by TTJ for the fabrication of structural steel including prefabricated prefinished volumetric construction (PPVC) units. However, TTJ has since ceased production of PPVC units, with the property left vacant and equipment unused.
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The property and assets are being sold to Air Products Specialised Process Equipment, an unrelated company primarily engaged in the manufacturing of cryogenic air separation equipment.
Net proceeds from the disposal are expected to amount to RM41.3 million, and are intended to be used for working capital purposes and to undertake new investment opportunities that may arise in the future.
The assets have a book value of RM36.2 million as of Jan 31. Post-transaction, the disposal is expected to result in a net gain of RM5.5 million, or approximately $1.6 million, for TTJ.
Shares in TTJ closed flat at 15 cents on June 8.
