KUB sells construction product subsidiary for RM19mil

KUALA LUMPUR: KUB Malaysia Bhd (KUB) has signed a share acquisition agreement to sell its subsidiary, KUB Precast Sdn Bhd, to Jeks Precast Sdn Bhd for RM19mil. 

In a statement, KUB said the disposal price was arrived at after taking into account KUB Precast’s financial position, existing market position and future prospects. 

KUB Precast, whose products include precast concrete slabs, reported a pre-tax loss of RM5.32mil for the financial year ended Dec 31, 2015 (FY15) and a net loss before tax of RM1.22mil for the first quarter of FY16. 

“The proposed disposal is in line with the group’s strategy to dispose its non-performing assets to further improve its profitability,” it said. 

KUB president and group managing director Datuk Abdul Rahim Mohd Zin said with the proposed disposal, KUB was realigning its focus and efforts on its core businesses, namely agriculture, energy and information and communication technology to sustain its future growth. 

“The proceeds from this exercise will further strengthen our balance sheet and will be employed to enhance our returns and profitability, and ultimately to generate more value for our shareholders,” he said. - Bernama