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Samko Timber unit looking to dispose of two parcels of land, buildings in Indonesia

PROCESSED timber products company Samko Timber said its subsidiary PT Sumber Graha Sejahtera is proposing to dispose of two parcels of land and the accompanying buildings in Indonesia.

Announcing this in a Singapore Exchange filing on Monday, the company said the proposed sale is subject to the approval of its shareholders at an extraordinary general meeting to be convened.

The two parcels are in Banten and Jawa Barat provinces.

They are currently being used by Samko Timber for the operation of one of its factories engaged in the production of plywood and other wood products.

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Upon completion, Samko would have disposed of its entire interest in the assets, and the buyers would have jointly acquired the entire interest.

The company expects to receive net proceeds of about S$6.11 million, after deducting estimated expenses of about S$933,172 from the proposed disposal.

The net proceeds are intended to meet cash flow and capital expenditure requirements for expansion and development of the other businesses of the group, and for its general working capital, as the directors deem fit in their absolute discretion.