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AEI proposes sale of Penjuru Lane property for S$19m

AEI Corporation has entered into a put and call option agreement to sell its 12 Penjuru Lane property for S$19 million to ACW Holdings – a logistics provider.

The group previously used the single-storey property as its main venue for manufacturing/extrusion activities before relocating these activities to a Tuas South factory in January 2017, AEI said on Monday after trading hours.

The net gain on the proposed sale is about S$17.1 million, after deducting estimated expenses of around S$100,000 related to the proposed sale. The property's book value is around S$1.8 million, based on the group’s unaudited consolidated financial statements for the first half ended June 30.

The group said the proposed sale is in line with its overall plans to transition into new businesses to enhance income streams. Sale proceeds will go towards strengthening the group’s financial position and facilitate funding of its overall plans to diversify into new businesses.

The proposed sale constitutes a major transaction and is subject to shareholder approval at a general meeting to be convened.

The counter last closed on Dec 27 at S$0.85, down 1.5 Singapore cents or 1.7 per cent.