SINGAPORE - Civil engineering firm Tat Hong Holdings announced that its indirect fully-owned subsidiary Tat Hong Plant Hire in Malaysia has reached a sale and purchase agreement to sell its Shah Alam property to Hiro Food Packages Manufacturing.
The property, a freehold land of 8,166 square metres, will fetch around $6.5 million, the firm said in an announcement filed to Singapore Exchange on April 13.
"The Shah Alam property has a net book value of approximately $2.3 million as at March 31 2015, and the group would realise a gain of approximately $4.2 million after deducting expenses," Tat Hong said.
The move came after Tat Hong relocated its core crane rental operations from Shah Alam to larger premises in Kulaijaya, Johor. The Johor site was acquired last year to house expanded operations under one roof and cut down on operating costs.
If the transaction is completed in the current financial year, Tat Hong's earnings per share will increase 12.52 per cent from 5.11 cents to 5.75 cents, the firm added in an illustration on the deal's proforma financial effects.