PRG disposes of 12% stake in Furniweb

In a filing with Bursa Malaysia, Country View said that the acquisition

KUALA LUMPUR: PRG Holdings Bhd has disposed of 60.48 million shares or 12% equity interest in Furniweb Holdings Ltd for 50 Hong Kong cents (26 sen) a share or HK$30.24mil.

In a filing with the stock exchange, PRG said the disposal will enable it to rationalise its investment in Furniweb. The proceeds will go towards its expansion into healthcare and working capital. 

Upon completion of the share disposal, PRG's shareholding in Furniweb will be reduced from 75% to 63%.

"The Disposal Consideration, which was fully satisfied in cash, was arrived at based on willing buyer & willing seller basis.

"The disposal price of HK$0.50 per Sale Share is 34% above the net tangible assets per share of HK$0.37 of FHL based on the latest announced unaudited interim financial statements for the six months ended 30 June 2018," it said.

Furniweb is an investment holding company listed on the Growth Enterprise Market (GEM) of the Hong Kong stock exchange. Its subsidiaries are principally engaged in the manufacturing and sale of elastic textile and webbings.

In August this year, Furniweb had issued a profit warning to investors ahead of posting a 77.4% year-on-year decline in net profit to RM612,000 on the back of 24% lower revenue of RM44.5mil for the six months ended June 31, 2018.

The group said its profitability had been affected by lower sales volume, a negative impact on forex exchange, lower production volume and higher expenses.

At 12.30pm, PRG's share price was down one sen or 1.3% to 76 sen on the back of very low trading volume.