Aspen unit proposes another buyer to sell rights title and interest in land, factory for RM200 million

ASPEN Glove, a unit of mainboard-listed Aspen Group , has entered an agreement to sell its rights title and interest in a piece of leased land in Malaysia and the factory built upon it for RM200 million (S$61.2 million).

The buyer, Sustainable Waste Management Holdings, is a unit of Singapore-based Nutara Investment, Aspen disclosed in a Thursday (Dec 15) bourse filing. Aspen previously entered an agreement to sell the land and factory with another buyer, Cambridge Real Estate Partners, in October, but this was terminated on Dec 6 due to non-fulfilment of certain conditions. 

Nutara is part of a German-originated group of companies active in construction and environmental technologies. It also indirectly holds 49 per cent of Tialoc Malaysia, a company that in March served notices of claims for over RM100.4 million to two Aspen units.

The land, located at the Kulim Hi-Tech Park in Kedah, measures 117,200 square metres (sq m). It has been leased by Aspen Glove for a 60-year term from September 2020. The factory has a built-up area of 426,191 sq m.

Aspen will be seeking the approval of its shareholders for the sale at an extraordinary general meeting to be convened. The sale is expected to result in a gain on disposal of RM14.9 million. It will strengthen Aspen’s financial position and also enable a final settlement of claims and legal proceedings between Aspen Glove and Tialoc, the company said.

Aspen shares closed flat at S$0.034 on Thursday.