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KUALA LUMPUR (March 20): Mieco Chipboard Bhd (KL:MIECO) is selling 16.9 acres (68,532.58 sq m) of land with an office, factory and warehouse in Semenyih, Selangor, to hamper services provider Jin Ye Ye Sdn Bhd for RM57 million.
The sale represents a strategic initiative to enhance the group's long-term viability amid an increasingly challenging operating environment, the particleboard manufacturer said in a bourse filing on Thursday.
The bulk of the disposal proceeds will be used to cover the redemption sum on the property, while the remainder will fund working capital, as well as the disposal’s related expenses and taxes.
The company expects to book a net gain of RM11.27 million from the sale of the plot, whose audited net book value stood at RM40.23 million as at end-December 2024.
Jin Ye Ye, jointly owned by Andy Tan Kim Soon and Alan Tan Kim Chai, provides wholesale, retail and trading in confectioneries, processed foods and beverages, according to Mieco. Jin Ye Ye describes itself as a hamper specialist on its website.
Mieco’s unit, Seng Yip Furniture Sdn Bhd, inked a conditional sale and purchase agreement with Jin Ye Ye for the deal, which it expects to be completed in the second half of 2026.
Shares in Mieco were untraded on Thursday. The counter was last traded on March 18, when it closed at 65 sen, valuing the company at RM650 million.
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