Aspen proposes sale of its factory building and leased land for RM200m

WITH the pandemic easing and the sale prices of gloves sliding, mainboard-listed Aspen (Group) is now proposing to sell its glove-making subsidiary’s factory building and the leased land on which the facility sits for RM200 million (S$61.1 million).

As the deal entails a sale of over 20 per cent of the group’s total net asset value, it is therefore a major transaction. Aspen would need the approval of its shareholders to go ahead with it.

Aspen noted that the proposed disposal could book a gain of about RM14.9 million; if the sale goes through, it could bring the net tangible asset value per share of the company to 39.22 sen from 37.84 sen, on a pro forma basis.

In a statement filed by Malaysia-based Aspen on Friday (Oct 7), the property developer – which waded into glove-making at the height of the pandemic, when demand for the protective gear was through the roof – said it intends to sell the land in Kulim Hi-Tech Park in the state of Kedah to Singapore real estate fund manager, Cambridge.

An Aspen unit had built the Kulim facility on a plot of land leased from Kulim Technology Park Corporation Land, the approval of which was one of the conditions to complete the deal.

Aspen shares closed at S$0.049 on Friday, 2.1 per cent higher, before this proposed sale was announced.