Avarga (SGX:U09) subsidiary UPP Pulp and Paper entered into agreements for selling properties in Malaysia, according to a Wednesday filing with the Singapore Exchange.
The agreements include the sale of two parcels of agricultural land, along with existing structures erected within, and a parcel of freehold industrial land that consists of a single detached factory building, a three-story office building, working quarters, and a cabin.
The company decided to sell the properties in Selangor, Malaysia, due to the cessation of its paper manufacturing business. The buyer is a subsidiary of Kossan Rubber Industries (KLSE:KOSSAN).
Avarga expects a gain on disposal of around SG$13.5 million, and net proceeds of around SG$25.3 million will be used for repayment of borrowings and investment purposes.
Shares of the company were up over 2% in recent trading.
Price (SGD): S$0.24, Change: S$+0.0050, Percent Change: +2.17%
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