PETALING JAYA: Johan Holdings Bhd has proposed to divest its entire stake in loss-making Diners Club (Singapore) Private Ltd (DCS) for a disposal consideration of S$103.59mil (RM313.98mil).
Johan said it was expected to realise a gain of S$62.12mil from the proposed disposal of its entire interest in the company that provides charge card and credit card services.
In its filing with the stock exchange, the company announced that its wholly owned subsidiary Johan Investment Private Ltd had entered into a conditional share purchase agreement with Ezy Net Pte Ltd, Candypay Holdings Pte Ltd and Genesis Business Holdings Pte Ltd for the disposal of 4.64 million ordinary shares in DCS, representing the entire equity interest in the company.
Johan said the disposal consideration represented a premium of 163.24% to DCS’ latest audited net assets of S$39.4mil for the financial year ended Jan 31,2020.
“Accordingly, the price-to-book ratio implied by the disposal consideration for the proposed disposal is approximately 2.63 times, ” it said.
“The rationale of the proposed disposal is to divest Johan’s loss-making subsidiaries, ” it added.
It noted DCS had been recording net losses since the financial year ended Jan 31,2018.
The proposed disposal is expected to be completed by the first quarter of 2021, Johan said.
Johan’s shares closed unchanged at 21.5 sen yesterday.