The sale and purchase agreement was entered into with Yayasan Dazhi Monday, Oversea Enterprise said in a filing to Bursa Malaysia.
It said the properties were acquired on Feb 21, 2006 and its disposal would result in a loss of RM3,000 to Restaurant Oversea.
"The proceeds arising from the disposal is intended to be used for the working capital of Restaurant Oversea and is expected to be utilized within a period of 24 months from the date of the sale and purchase agreement," it said.
As for the rationale for the disposal, it said: "The location of these properties were found to be unsuitable for the intended business activities of Oversea and its subsidiaries and the current rental income derived from these properties was low.
"The disposal would generate additional cash reserves for Restaurant Oversea's working capital purposes."
By Bernama
