Wednesday, July 31, 2013
Cogent: Group's wholly-owned subsidiary SH Cogent Logistics received $100k for an option to purchase its property at No. 1 Chia Ping Road from Crane World Asia. The property comprise a land area of 14,900 sqm and is currently used for warehousing & related logistics services, engineering and handling of automotives. The option to purchase the property at $10m will expire on 13 Aug. The book value of the property was marked at a historical value of $3.6m and the excess of $6.4m gain (1.34cents/share) will be used for general working capital. Subsequently, group's gearing will be reduced from 0.09x to 0.05x. The disposal of property is to consolidate the group's logistics operations as Cogent intends to reallocate its warehousing capabilities and resources to enhance coordination among its existing operations and broaden its customer bases at its other facilities.