Unisem to sell land in Batam for RM143 mil

KUALA LUMPUR (April 7): Unisem (M) Bhd has proposed the disposal of its land and building in Batam city in Indonesia’s Riau province for US$34 million (RM143.31 million).

The group said its indirect subsidiary, PT Unisem, is selling the assets to PT Infineon Technologies Batam, with the proceeds to be used to fund Unisem’s operations in the form of working capital and capital expenditure.

“PT Unisem has discontinued its operations in March 2020. Since then, management has put the land and building in the market.

“The disposal will allow Unisem to recover the financial assistance extended to PT Unisem during the period of plant closure in 2019 and 2020,” Unisem said in a filing with Bursa Malaysia.

The group said it expects to obtain a net gain of RM130.65 million from the sale, adding that the transaction will have a positive effect on its earnings and net asset for the current financial year ending Dec 31, 2022.

Shares in Unisem settled six sen or 1.90% lower at RM3.09 on Thursday (April 7), valuing the group at RM4.98 billion.