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- PGB plans to allocate the proceeds toward disposal-related expenses, partial repayment of bank borrowings and working capital.
KUALA LUMPUR (Dec 4): Paragon Globe Bhd has agreed to dispose of a 5.45-hectare freehold industrial parcel in Tanjung Kupang, Johor, to GSP Automotive Malaysia Sdn. Bhd. for RM64.47 million.
In a bourse filing on Thursday, the transaction was formalised through a conditional sale and purchase agreement signed by PGB’s wholly-owned subsidiary, PGB Landmark Sdn. Bhd. (PLSB).
The land, located within Gerbang Nusajaya and surrounded by major industrial developments, is currently vacant and designated for commercial and industrial use. It was valued at RM24.5 million in 2023.
The agreement requires GSP to pay a total of 10% in deposits, with the remaining 90% due within three months of the SPA becoming unconditional.
Completion is subject to several conditions, including state approval for foreign acquisition under Section 433B of the National Land Code, completion of earthworks by PLSB, and amendments to the land’s express conditions.
PGB plans to allocate the proceeds toward disposal-related expenses, partial repayment of bank borrowings and working capital.
The company is of the view that the disposal to generate an estimated net gain of RM22.14 million and strengthen its financial position.
No directors or major shareholders of PGB have any interest in the transaction.
Subject to regulatory approvals, the disposal is expected to be completed by the fourth quarter of 2026.
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