Ge-Shen Unit Disposes Of Land In Johor For RM35.50 Mln

KUALA LUMPUR, July 7 (Bernama) -- Ge-Shen Corp Bhd’s wholly owned subsidiary, Ge-Shen Plastic (M) Sdn Bhd, has entered into a sale and purchase agreement with Plastico Sdn Bhd to dispose of five parcels of freehold land located in Tebrau, Johor, for RM35.50 million.

In a filing with Bursa Malaysia today, the precision engineering and manufacturing services provider stated that the proposed disposal allows the group to utilise the proceeds, which are expected to contribute positively to the group’s future cash flow when it materialises, and the repayment of bank borrowings would enable Ge-Shen to lower its gearing ratio. 

The proposed disposal is expected to be completed in the fourth quarter of 2026. 

“Upon completion of the proposed disposal, RM25.69 million will be used for repayment of bank borrowings, and RM2.56 million is allocated for defraying estimated expenses relating to the proposed disposal.

“The remaining RM7.23 million will be used for working capital,” it said.

Ge-Shen expects the proposed disposal to improve the group’s financial position and financial performance, and the group is expected to record a net pro forma gain on disposal of RM12.63 million based on the net book value as at Dec 31, 2025.

-- BERNAMA