BIG Industries seeks to sell Johor land for RM4.5 mil cash

• Based on the group’s bourse filing, the land is on a 60-year leasehold, set to expire on May 31, 2069 and measures out to 1.652 acres, or 0.6687 hectares.

KUALA LUMPUR (June 13): BIG Industries Bhd has entered into a sale and purchase agreement (SPA) with SJ Holdings Sdn Bhd for the proposed disposal of a piece of land in Johor for RM4.5 million cash.

Based on the group’s bourse filing, the land is on a 60-year leasehold, set to expire on May 31, 2069 and measures out to 1.652 acres, or 0.6687 hectares.

BIG Industries had originally operated its industrial gas branch at the said location and said that it is looking to sell the land with the branch continually incurring financial losses, which led the management to cease operations and thereafter dispose of the property.

The sales consideration is implied to be executed in two tranches, with proceeds to be utilised as working capital as well as investment in its Samalaju Industrial Park branch.

The group estimates that the proforma gain arising from this transaction will amount to RM3.55 million after deducting estimated expenses and capital gains tax.

However, it should be noted that the transfer of the property is subject to the approval of Pentadbiran Tanah Johor, with BIG Industries required to submit the necessary application for the transfer within 14 days from the date of the SPA.

Barring any unforeseen events, “BIG envisages that the proposed disposal will be completed within nine months from the date of the SPA,” it added.

SJ Holdings is a private limited company in Malaysia and its principal activity lies in investment holding.

BIG Industries’ shares gained seven sen or almost 11% to close at 71 sen, giving the group a market capitalisation of RM44.71 million.