DGL Group (ASX:DGL) entered into a binding agreement to sell two of its chlor-alkali manufacturing plants, marking a decisive shift in the company's operational focus.
The divestment, valued at a total consideration of $2.5 million, is currently subject to standard commercial terms and conditions.
The move comes as part of an intensive strategic review aimed at optimising financial performance and streamlining the group’s portfolio to prioritise its core business units.
The financial implications of the sale reflect an adjustment to the company's balance sheet.
As of June 30, the manufacturing assets held a carrying value of approximately $7.9 million. DGL has recognised a substantial non-cash impairment charge of roughly $5.3 million.
The write-down is slated to be formalised within the company’s half-year financial statements for the period ended Dec. 31, 2025, which are expected to be released to the market in the near term.
Management attributed the decision to sell and the subsequent reduction in asset value to shifting market conditions within the chlor-alkali sector.