PETALING JAYA: Ge-Shen Corporation Bhd, a provider of precision engineering and manufacturing solutions specialising in high-quality plastic and metal components for diverse industries, has proposed to dispose of five freehold industrial properties located in Mukim Tebrau, Johor Bahru, for a total cash consideration of RM35 million.
The proposed disposal is part of the group’s strategic initiative to optimise asset utilisation, consolidate manufacturing operations and enhance financial flexibility for future expansion.
The properties, currently used as office, warehouse and factory spaces, are part of a proposed disposal, with Ge-Shen having entered into a binding term sheet with Plastico Sdn Bhd. The transaction is expected to be completed in the third quarter of 2025, subject to the execution of a definitive sale and purchase agreement.
The proposed disposal aligns with Ge-Shen’s broader strategy of streamlining its asset portfolio to enhance operational efficiency. The proceeds from the transaction will be utilised to repay bank borrowings and support working capital requirements, thereby strengthening the group’s financial position.
The proposed disposal is anticipated to generate a proforma gain of about RM14.3 million, reinforcing the group’s commitment to delivering sustainable value for shareholders.
Ge-Shen CEO Dr Adrian Foong Hong Nian said, “This strategic disposal is part of our ongoing efforts to optimise our asset base and focus on our core competencies. By divesting non-core assets, we are improving our financial flexibility, reducing debt, and positioning Ge-Shen for sustainable growth. This move will also allow us to streamline operations and consolidate our manufacturing facilities, enhancing efficiency and resource allocation. The proceeds from this transaction will enable us to reinvest in high-value areas that drive innovation and efficiency, further solidifying our market position.”
He added that Ge-Shen remains committed to its growth trajectory, focusing on expanding its capabilities in precision manufacturing while leveraging Industry 4.0 advancements. By enhancing production efficiency and strengthening its financial standing, he said the roup aims to reinforce its competitiveness in high-growth industries such as electronics, medical devices, and industrial components manufacturing.
