KUALA LUMPUR, April 27 — Green Ocean Corporation Bhd’s wholly-owned subsidiary, Ace Edible Oil Industries Sdn Bhd (AEOI), had entered into two sale and purchase agreements with Wilee Vegetable Oils Sdn Bhd (WVO) for the disposal of a piece of freehold land and plant and machinery for RM23.4 million.
In a filing with Bursa Malaysia yesterday, the group said that the freehold land measuring approximately 19,549 square metres is located at Jalan Kapar, Klang, with the buildings erected thereon.
Green Ocean said the land sale would include buildings erected on the property, including a double-storey office annexed with a single-storey factory, a single-storey PCK plant, a single-storey warehouse, a Tenaga Nasional Bhd’s substation and all other outbuildings.
It said the proposed disposal would allow AEOI to unlock and realise its investment at a favourable price due to the property’s location, potential, easy accessibility, ready amenities and infrastructure.
“Due to the factors above, it provides an opportunity for Green Ocean to sell the property and plant and machinery at a premium, which is over its audited net book value of RM19.49 million as at June 30, 2022.
“Upon completion of the proposed disposal, Green Ocean is expected to realise an estimated gain of approximately RM3.45 million, net of estimated expenses,” it shared.
The group said disposal would also allow Green Ocean to strengthen its liquidity and cash flow position by raising total net cash proceeds of approximately RM22.93 million after deducting estimated related expenses and would provide immediate cash flow channelled towards its business operations for its working capital purposes.
It added that the exercise would not affect the share capital and shareholding structure of the company and is expected to positively contribute to Green Ocean’s earnings and net assets.
— Bernama
