Green Ocean disposes of property in Klang for RM23.4 mil

KUALA LUMPUR (April 26): Green Ocean Corp Bhd is disposing of a piece of land in Klang, together with a plant and machinery, for a total of RM23.4 million.

The freehold land measuring 19,549 sq metres in Batu 4, Jalan Kapar is being sold for RM22.4 million, and the plant and machinery for RM1 million, the group said in a bourse filing.

The purchaser of the assets, held by Green Ocean's wholly-owned unit Ace Edible Oil Industries Sdn Bhd, is Wilee Vegetable Oils Sdn Bhd.

Green Ocean said it expects to realise an estimated gain on disposal of approximately RM3.45 million.

It added that the sale allows the group to strengthen its liquidity and cash flow position by raising total net cash proceeds of about RM22.93 million (after deducting related expenses), which will provide immediate cash flow channeled towards the group's business operations for its working capital purposes.

Green Ocean’s share price closed flat at 1.5 sen on Wednesday, with a market capitalisation of RM23.76 million. Since the beginning of this year, the stock has declined by 25%.