KUALA LUMPUR (March 29): QL Resources Bhd has disposed of its remaining shareholding of about 38% in QL KK Properties Sdn Bhd for a cash consideration of about RM7.3 million, in line with the group’s strategic review to focus on its core business.
According to its filing with Bursa Malaysia, the proposed disposal is an opportunity for QLF to realise the gains from QLF’s investment in QL KK Properties.
QL KK Properties is a wholly-owned subsidiary of QL Feedingstuffs Sdn Bhd (QLF), which is wholly-owned by QL Resources.
On March 17 this year, QLF has already disposed of about 61.97% equity interest in QL KK Properties to a related party, namely Ruby Technique Sdn Bhd for a cash consideration of RM11.8 million.
The directors of Ruby Tech are Chia Soong Kooi, Chia Song Swa and Chia Seong Fatt, who are also directors of QL Resources. The shareholders are CGB Holdings Sdn Bhd and Farsathy Holdings Sdn Bhd and both are also major shareholders of QL Resources.
The latest announcement saw QLF enter into another share sale agreement with Ruby Tech to further dispose of approximately 38% equity interest or 1.43 million shares in QL KK Properties, for RM7.3 million.
“Upon exercise of the put option, the expected gain arising from the disposal of the balance of the 1,430,000 ordinary shares would be another RM5.827 million. The sales proceeds will be utilized as working capital for the group,” the filing with Bursa said.
At closing, QL Resources edged higher by 1.31% to RM4.65 with 241,100 shares traded, giving it a market capitalisation of RM5.69 billion. — theedgemarkets.com