KUALA LUMPUR: London Biscuits Bhd (LBB) is selling RM70 mil worth of assets to Pacific Petcare Sdn Bhd as part of its liquidation and to generate cash to pay creditors.
In a filing with Bursa Malaysia today, the confectionery manufacturer said its asset sale agreement with Pacific Petcare has Mamee-Double Decker (M) Sdn Bhd as guarantor. Pacific Petcare is a wholly-owned subsidiary of Mamee.
The assets to be sold include seven parcels of freehold industrial land in Plentong, Johor Bahru, together with the buildings, plant and machinery on them, as well as intellectual property rights comprising certain trademarks.
“The remaining assets of the company are expected to be realised in the future as part of the liquidation of LBB,” it added.
LBB expects the sale to be completed by the third quarter and said the move will decrease the company’s consolidated earnings and earnings per share for the financial year ending Sept 30, 2020, as it expects to realise a loss from the sale.
The assets concerned were originally acquired at about RM195 mil. – May 6, 2020, Bernama
