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KUALA LUMPUR: Southern Steel Bhd (SSB) is proposing to dispose of two parcels of land measuring 12.56 hectares in Pasir Gudang, Johor Bahru to Sinppa Industrial Sdn Bhd (SISB) for RM65 million, where it foresees a net gain on disposal totalling RM6.42 million.
In a filing with Bursa Malaysia, SSB said the aforementioned properties are not needed for its operations, and the move will enable it to realise its investment in the property.
"The consideration is proposed to be used for repayment of borrowings.
"Based on the company’s unaudited consolidated statement of financial position as at Sept 30, 2021, the gearing ratio of SSB Group is estimated to reduce from 1.19 times to 1.10 times upon completion of the proposed disposal,” it said. - Bernama