KUALA LUMPUR: Malayan United Industries Bhd (MUIB) has proposed to dispose of 65.9% stake in Pan Malaysia Holdings Bhd (PMHB) for RM36.7mil.
In a filing with Bursa Malaysia, MUIB said its subsidiaries, Loyal Design Sdn Bhd (LDSB), MUI Media Ltd (MML) and Megawise Sdn Bhd (MSB) have entered into a sale and purchase agreement (SPA) with Exsim Hospitality Holdings Sdn Bhd to dispose of 612.12 million ordinary shares in PMHB, representing 65.90% of the total issued share capital of PMHB.
Following the disposal, PMHB and its subsidiaries are no longer subsidiaries of MUIB.
The balance of the PMHB Shares held by MUIB and its subsidiaries after the disposal is 22.42 million PMHB shares representing approximately 2.42% equity interest in PMHB.
MUIB said the disposal would enhance its cash position, necessary for meeting ongoing working capital needs and fulfilling existing loan obligations.
“CPRPD requires significant capex investments in order to achieve its full revenue potential. Divesting PMHB allows MUIB to avoid the cash flow risks associated with CPRPD’s renovation needs.
“CPRPD has incurred accumulated losses of RM38.5mil in its audited financial statements for the FYE June 30, 2023. By divesting PMHB, the MUIB Group can alleviate the financial burden of these losses, thereby enhancing the group’s profitability,” it added.