VIP Gloves Limited’s (ASX:VIP) two wholly owned Malaysian subsidiaries have executed a sale and purchase agreement (SPA) for the sale of the vacant land adjoining the existing factory site to Target Precast Industries Sdn Bhd (TPI) (an unrelated Malaysian company) for MYR 7,952,313 (AU$2.65 million).
The sale of land and buildings will provide a significant cash injection for the company, with funds used to eliminate financial borrowings and provide ongoing working capital.
Sale agreement terms and conditions
Completion of the sale agreement is conditional upon TPI receiving approval by its shareholders within 90 days of signing the SPA and obtaining the consent of local government to the transfer of the land (Consent) within 90 days of the date of the sale agreement.
Purchase Price of MYR 7.9 million will be paid in two tranches as follows:
1. MYR 795,231 (approximately A$265k) (Deposit) to be paid to the company’s solicitor representing 10% of the total purchase price upon signing the SPA
2. MYR 7,157,082 (approximately A$2.385 million) representing 90% of the total purchase price to be paid within 90 days from the date of signing the SPA with any extension of that period carrying an interest rate of 8% per annum.
