The Company (“Protasco”) wishes to announce that its wholly owned subsidiary, Kumpulan Ikram Sdn. Bhd. (“KISB”) has divested 210,000 ordinary shares held in Kumpulan Ikram (Sarawak) Sdn. Bhd. (“KI Sarawak”), representing 21% of its paid up capital to a businessman from the state of Sarawak, for a total cash consideration of RM29,400, based on the net tangible assets of KI Sarawak.
KI Sarawak has an issued and paid-up share capital of RM1,000,000 comprising 1,000,000 ordinary shares.
Following the divestment, KISB will own 30% equity of KI Sarawak and KI Sarawak shall cease to be a subsidiary of KISB.
With majority local participation, it is envisaged that KI Sarawak would improve its operational efficiency, have stronger growth opportunities and business sustainability and will bring a positive impact to Protasco’s future earnings.
The divestment will not have any material effect on the earnings and net assets of Protasco Group for the financial year ending 31 December 2021.