Hovid sells India unit stake for RM5.6mil

PETALING JAYA: Hovid Bhd is disposing its 51% stake in Indian pharmaceutical and consumer products company Biodeal Pharmaceuticals Pte Ltd (BPPL) for 102 million Indian rupees (RM5.6mil).

In a filing with Bursa Malaysia, Hovid said it would make RM986,000 from the share sale.

It also expected its gearing to improve as BPPL’s liabilities, which included unsecured loans of RM5.79mil would no longer be included in the group.

BPPL made losses of RM112,000 and RM109,000 in financial years 2012 and 2013 respectively.

Hovid said it intended to use the proceeds for working capital.

Hovid Bhd