SINGAPORE (Oct 10): Samko Timber has entered into an agreement to dispose two parcel of lands in Indonesia for 70 billion rupiah ($7 million).

One of the land measures 2.875 sqm is located in Banten province while the other, measuring 50.325 sqm, is located in Jawa Barat province.

The lands are currently being used for the operation of one of Samko’s factory engaged in the production plywood and other wood products.

The vendors are Indonesian citizens who are unrelated to the company. Samko expects to receive net proceeds of $6.1 million.

Samko says proposed disposal presents a good opportunity for the group to realise cash flow for strengthening the group’s working capital and relocate the operations of the factory to another parcel of land located in Jambi, Sumatera.

Shares in Samko Timber closed 0.3 cent at 3.4 cents.