Teo Seng Capital Bhd plans to sell its two-storey factory in Singapore for S$8.5 million (RM29.4 million) to divest its under-utilised assets and strengthen its financial position.

In an exchange filing today (Nov 14), Teo Seng said the move comes as the company faces regulatory limitations affecting its egg exports to Singapore, leading to the property's under-utilisation.

The property, currently used by Teo Seng Group for operations in Singapore, also houses a central kitchen rented by LHK Food Industries Pte Ltd until Aug 14, 2024.

The proposed sale involves its subsidiary, BH Fresh Food Pte Ltd (BHFF) and Rachelle The Rabbit Meadery Pte Ltd (the purchaser).

The sale is seen as an opportunity for Teo Seng to streamline its assets.

The purchaser Rachelle The Rabbit Meadery Pte Ltd specialises in distilling, rectifying, and blending spirits, including ethyl alcohol production from fermented materials.

In today's trading, Teo Seng shares closed at 1.38 sen, down 3% (4 sen) with a market capitalisation of RM414 million.