What is the expected financial gain from the property sale?

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Hume Cement Industries Bhd Anticipates RM32 Million Net Gain from Property Disposal

Hume Cement Industries Bhd (HCIB) is set to achieve an estimated net gain of approximately RM32 million following the sale of a property located in the Prai Industrial Estate, Penang. This transaction involves HCIB's wholly owned subsidiary, Hume Concrete Sdn Bhd (HCCT), divesting the property to Skygate Technology (KL) Sdn Bhd for a cash consideration of RM39.8 million. The disposal is expected to be finalised within the latter half of 2024, barring any unforeseen circumstances.
Property Disposal Details

The transaction involves Hume Concrete Sdn Bhd selling a parcel of land in Penang's Prai Industrial Estate, inclusive of all buildings, fixtures, fittings, and other associated items. This sale is being conducted via a conditional sale and purchase agreement with Skygate Technology (KL) Sdn Bhd. The cash sum agreed upon for the disposal is RM39.8 million.
Rationale for Sale

HCCT has indicated that the property in question is no longer required for its operational activities. The proposed disposal is therefore seen as an opportunity for HCCT to monetise its investment in this asset. This move aligns with strategic decisions to optimise asset utilisation and realise capital from non-core holdings.
Projected Financial Outcome

Upon the successful completion of the property sale, HCIB anticipates recording an estimated net gain of around RM32 million. This figure represents the projected profit after accounting for all costs associated with the disposal. The company has made a formal filing with Bursa Malaysia regarding this transaction.

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What is the expected financial gain from the property sale?

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