Johan to sell Diners Club for RM314mil


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.

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.

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 46
Cxense type: free
User access status: 3
Join our Telegram channel to get our Evening Alerts and breaking news highlights

Johan Holdings , Diners Club , DCS ,

   

Next In Business News

MUI Group's PMC to buy 51% stake in A&W Malaysia
Yinson reports third straight quarterly earnings growth
KPower posts RM37.4mil net profit in FY21, despite Covid-19 setbacks
FBM KLCI broadly higher on bargain-hunting activities
BNM's international reserves at US$116.2bil as at Sept 15
China stocks end higher, Evergrande's assurances lift real estate firms
Maybank, UOB to jointly underwrite RM2bil Islamic facility for Malayan cement
DFIs provide micro-SMEs with financing totalling RM8.1bil
Oil prices rise on tight supply, renewed risk appetite
Citi Malaysia bags multiple banking awards

Stories You'll Enjoy


Vouchers