British American Tobacco (Malaysia) Bhd has told Bursa Malaysia that it has entered into a conditional sale and purchase agreement for its plant and land at Petaling Jaya, according to a story in The Borneo Post.
BAT announced in March that it intended to stop manufacturing in Malaysia and source its tobacco products for the domestic market from other group factories regionally.
At that time, the company was quoted by local media outlets as saying that its Tobacco Importers and Manufacturers Sdn Bhd unit (TIM), which makes tobacco products and semi-finished goods at its factory in Jalan Universiti, Petaling Jaya, would wind down its operations in stages. The process was targeted to be completed by the second half of 2017.
It was reported that the winding down of the factory would affect about 230 employees, who would be provided with a benefits package as well as the option to undergo a career-transition program.
BAT said the restructuring was in line with the company’s efforts towards realizing a new and more sustainable business model, amid an increasingly challenging business environment.
The sale and purchase agreement was made through TIM with LGB Properties Sdn Bhd.
The sale is conditional upon approval by BAT’s shareholders.