Iris Corp sells stake in Thai company to Yunnan Water HK

KUALA LUMPUR: Iris Corporation Bhd is selling its 75% stake in a Thai subsidiary PJT Technology Co., Ltd’s for US$24mil (RM103.15mil) to Yunnan Water (Hong Kong) Company Ltd.

Iris, which is involved in digital identity and farming, said on Monday the proposed disposal would enable it to unlock the value of assets which are not part of the company’s core business. 

“The proposed disposal is in line with the company’s plan to strengthen its balance sheet,” it said, adding the sale would free the group from further investments into the Phuket plant.

“The proceeds from the proposed disposal would provide future cash flow for the group’s working capital, reduce its borrowings and contribute towards expansion of its core business and other businesses,” it said.

Iris also said proceeds would be used to settle the outstanding loan owed to Standard Chartered Bank, Offshore Labuan and the balance for its working capital.

Yunnan Water’s core business activities are sewage disposal projects, supply of running and raw water amongst other related projects in China.