KUALA LUMPUR: Hextar Global Bhd says its wholly-owned Halex Link Sdn Bhd has completed the sale of its RM30 million, industrial freehold land in Johor to Plato Chemical (M) Sdn Bhd.
The agrochemical maker said the terms of the conditional Sale and purchase Agreement entered between Halex Link and Plato Chemical on October 21 last year had been fully satisfied and completed on July 13.
The sale involved a one-storey detached factory, with an annexed two-storey office building, which had a land area of 45,033 square metres and a built-up area of 13,656 square metres in Johor.
"The disposal is in line with the internal re-organisation of the production operations of the Hextar group which consolidated two production operation locations into a single operation," said Hextar Global.
The proceed from the disposal would be used to retire the loan taken from the bank for which the property had been charged as collateral loan which may result in an annual estimated interest savings of RM1.10 million, Hextar Global said.
"The surplus cash would be used to strengthen the group's cash resources and for future endeavours," it added.