KUALA LUMPUR (May 24): Perusahaan Kimia Gemilang (Vietnam) Company Ltd (PKGV) has entered into a sale and purchase agreement of assets with TOP Solvent (Vietnam) Limited Liability Company (TSV) for the disposal of terminal assets currently owned by PKGV for US$6.25 million (RM25.7 million).

PKGV is a wholly owned subsidiary of Perusahaan Kimia Gemilang Sdn Bhd (PKG), which in turn is a wholly-owned subsidiary of Nylex (Malaysia) Bhd.

In a filing with Bursa Malaysia today, Nylex said the sale, which will be fully satisfied in cash, was determined on a willing-buyer-willing-seller basis after the negotiation process taking into consideration the current condition and the original cost of investment of the assets.

“The proposed disposal represents an opportunity for the group to unlock and realise the value of the assets and to enhance and strengthen the collaboration with TSV and TOP Solvent Company Ltd of Thailand on the logistics and storage, procurement and supply of products, particularly in Vietnam.

“Subsequent to the disposal of the assets, PKGV will continue with its importation and distribution of industrial chemicals business, by leasing tanks from TSV and other tank operators in Vietnam,” it said.

Nylex said the proposed disposal is expected to be completed by the long stop date of June 30, 2021, which may be extended to Aug 31, 2021 as per the mutual agreement between the parties.