Paper company and wide format supplier Spicers has signed a deal to sell its Singapore property for $10.3 million as part of a proposed $147 million ‘scheme of agreement’ to sell the company’s entire ANZ operations to Japan-based global paper company Kokusai Pulp & Paper Co (KPP).
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| Spicers Paper, 3 Gul Crescent, Singapore |
In a statement to the ASX on Thursday, Spicers said it had entered into an agreement with HLS Property to sell its 11,000 sqm warehouse/production factory site at 3 Gul Crescent, Singapore for SGD 10.1 million ($A10.39 million).
Under the terms of the agreement, Spicers is entitled to receive net proceeds from the sale of approximately SGD 9.9 million ($A10.1m), and the money will form part of a return of capital to shareholders as outlined in the proposed scheme that was revealed last week.
Under the agreement with Kokusai, Spicers shareholders will receive a total of about $A57.6 million in sale proceeds from the company’s Asian operations, expected proceeds from the sale of properties in Singapore and Tasmania, and surplus ‘net cash’ amounts as at 30 June 2019.
In September 2018, Spicers sold its Asian paper businesses in Malaysia and Singapore to Japan Pulp & Paper company (JPP) – owner of Ball & Doggett - for SGD 15 million ($A15.2m). Spicers last month put the 56-hectare site of its former Wesley Vale Paper Mill near Devonport on the block and announced the sale of its second Tasmanian property for $2.85 million.
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| The site at 3 Gul Crescent, Singapore |
The sale of the Singapore property is subject to conditions, including approval for the change of use of the property from the Jurong Town Corporation.
“It is currently expected that JTC approval will be received in mid-April 2019, with final completion and the receipt of net property sale proceeds by Spicers to then follow in early June 2019,” Spicers told the ASX. “Once received, these net sale proceeds would form part of a return of capital to be proposed to shareholders under the proposed transaction between Spicers and Kokusai Pulp & Paper Co.”
Shareholders will vote on the proposed Kokusai transaction at a meeting in early June 2019. Subject to shareholder approval and the other conditions, the deal is expected to be implemented in July 2019.
