In a filing with Bursa Malaysia today, LBB said it has entered into an asset sale agreement with Pacific Petcare and Mamee-Double Decker (M) Sdn Bhd.

Pacific Petcare is a wholly owned subsidiary of Mamee.

The assets to be disposed include seven parcels of freehold industrial land in Plentong, Johor Bahru, together with erected buildings, machinery located within the premises, as well as intellectual property rights comprising certain trademarks.

“The target assets to be disposed of under the proposed disposal are only part of, and do not form all of the assets owned by the company.

“The remaining assets of the company are expected to be realised in the future as part of the liquidation of LBB,” it said.

Barring any unforeseen circumstances, LBB expects the proposed disposal to be completed by the third quarter of this year, and the timeframe for the full utilisation of the proceeds is likely to be within six months from the completion of the exercise.

“The proposed disposal is expected to result in the decrease of the company’s consolidated earnings and earnings per share for the financial year ending Sept 30, 2020, as the company expects to realise a loss arising from the proposed disposal,” it said.

The target assets were originally acquired at about RM195 million.