Sanli Environmental’s wholly-owned subsidiary, Sanli M&E Engineering, has proposed the sale of a leasehold property located at 28 Kian Teck Drive for $5.28 million to an independent third party.
Under an option to purchase granted to EDZ Interior Contracts, 1% of the purchase price, or $52,828.28 shall be payable upon the grant of the option by Sanli M&E.
The balance deposit of $211,313.13, or 4% of the purchase consideration shall be payable upon exercise of the option by the purchaser, and the balance 95% shall be payable upon completion of the proposed disposal.
As of the announcement dated Sept 24, the purchaser has paid $264,141.41.
The group says that the rationale for the sale of this property is due to the property’s inability to accommodate its expanded operations because of limited space.
Sanli has acquired a new property at 22 Chin Bee Drive, as per an announcement made on June 19, 2023 to consolidate the group’s corporate office and workshops, and house the company’s foreign workers in a centralised location.
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The board says that it believes the sale of 28 Kian Teck Drive is in the best interests of the group and shareholders, and will result in a positive cash flow of $5.22 million, thereby improving the liquidity of the group.
This will allow them to reallocate its resources to improve and optimise the utilisation of assets. It will use the net proceeds for the general working capital requirements of the group.
Shares in Sanli Environmental 1E3 closed flat at 8.5 cents on Sept 24.
