KUALA LUMPUR: Shares in NTPM Holdings Bhd rose over 2% in early trade Friday, as investors reacted positively to its plan to dispose of its toilet rolls and tissue manufacturing subsidiary.
The paper product manufacturer rose 2.26%, or 1.5 sen to 68 sen with 2.6 million shares traded. It is trading at a PE ratio of 118.53 times.
NTPM said it is disposing of its toilet rolls and tissue manufacturing subsidiary, as the firm has continuously incurred losses with little prospects of a turnaround in the near future.
The group is selling its entire 100% interest in NTMP Paper Mill (Bentong) Sdn Bhd) to XSD International Paper Sdn Bhd for RM27.5mil cash.
NTPM said the proposed disposal would allow the company to rationalise and streamline the group’s activities with a clear focus on maximising returns.
The disposal is expected to generate an estimated one-off gain of RM11.17mil to the group.
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