London Biscuits sells industrial land for RM70m to pay off creditors

KUALA LUMPUR (May 6): London Biscuits Bhd, which is currently under liquidation, is selling seven parcels of freehold industrial land in Johor Bahru for RM70 million.

The land comes together with buildings, plant and machineries, as well as intellectual property rights comprising certain trademarks and goodwill associated with such trademarks, the group said in a filing to Bursa Malaysia.

It said the purchaser of the assets is Pacific Petcare Sdn Bhd, with Mamee-Double Decker (M) Sdn Bhd acting as the guarantor.

“The proposed disposal has been carried out as part of the liquidation of the company and will generate cash for the ultimate distribution to the company’s creditors,” London Biscuits said, adding that the group will proceed to sell its remaining assets as part of the liquidation.

The seven parcels of land with a total land area of 13,451 sq metres, along with the buildings, had a total net book value of RM33.24 million as at Sept 30, 2018.

The aggregate net book value of the plant and machinery, meanwhile, was RM134.9 million, based on the group’s audited consolidated financial statements as at Sept 30, 2018.

The cost of acquisition of the land and buildings was RM12.97 million, while the plant and machinery stood at RM181.93 million.

Based on the consideration of RM70 million, the group’s proforma loss on disposal will be RM98.1 million.

Gearing, on the other hand, will increase to 1.43 times, from 1.05 times, the filing showed.

Barring any unforeseen circumstances, the proposed disposal is expected to be completed by the third quarter of 2020.

Shares of the PN17 company has been suspended since Jan 21. The counter was last traded at two sen.

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