KUALA LUMPUR: Unisem (M) Bhd announced that its indirect subsidiary PT Unisem has entered into a conditional sales and purchase agreement (SPA) with PT Infineon Technologies Batam for the disposal of its land and building for RM143.31 million.

       PT Infineon Technologies Batam is a limited liability company in Indonesia.

       Unisem said the proceeds from the disposal will be utilised for Unisem’s working capital and capital expenditures. The disposal is to be satisfied entirely in cash.

       "PT Unisem had discontinued its operations in March 2020. Since then the management has put the land and building on the market. The disposal will allow Unisem to recover the financial assistance extended to PT Unisem during the period of plant closure in 2019 and 2020,” it said in a stock exchange filing with Bursa Malaysia.

       The company said due to the discontinuance of PT Unisem’s operations, it had performed an assessment on the recoverability of the "carrying amounts” of PT Unisem’s property, plant and equipment.

       "The review led to the recognition of impairment losses by the group in the financial year of 2020 (FY2020) and the carrying amount was written down to RM9.07 million as of Dec 31, 2021,” it said.

       The company said the disposal will give rise to an estimated net gain on disposal of RM130.65 million and a positive effect on the earnings per share and net asset per share of Unisem for the financial year ending Dec 31, 2022. - Bernama