GIIB Holdings Bhd has proposed selling three leasehold industrial lots in Kuala Menggatal, Kota Kinabalu, Sabah, as well as the structures on the property, to Hexagon Supply Chain Solutions Sdn Bhd for RM25 million.
GIIB Holdings said in a filing with the Bursa Malaysia that the proposed disposal would be carried out through its wholly-owned subsidiary, Big Wheel Green Tyres Sdn Bhd. Currently, the property is vacant and unoccupied.
The disposal consideration, according to GIIB Holdings, will first be used to pay the redemption sum to redeem the property from the bank and to partially clear the group's term loan with the bank, estimated at RM15.79 million.
Since 2019, the organisation, which is primarily involved in the manufacturing of rubber compounds, tyre-related industry, and property development, has seen its revenue and earnings decline. As a result, it stated that the proposed disposal was part of the company's ongoing business rationalisation measures in an effort to streamline the business and improve its financial performance in the future.
The proposed disposal, which is expected to be completed by the first quarter of 2022, is not expected to have any other major impact on the group's profits and operations for the financial year ending December 31, 2021.