PETALING JAYA: Johan Holdings Bhd has completed the disposal of its loss-making Diners Club business in Singapore for S$103.59mil (RM313.98mil).
The disposal marked the change in the group’s main business. It is noteworthy that Diners Club made the bulk of its annual revenue of more than 80% in financial year 2020 (FY20) and 60% in FY21.
In a filing with Bursa Malaysia last week, Johan said the Diners Club disposal would see the group gaining about S$62.12mil (RM190.17mil).
The disposal included the entire stake in Diners Club (Singapore) Pte Ltd (DCS) and DCS’s subsidiary DinersPay Pte Ltd (DPPL) to Ezy Net Pte Ltd, an end-to-end electronic payment solutions provider in Singapore.
“The board of Johan anticipates that the glove business will generate a much higher revenue than that generated by DCS & DPPL, and also expected to largely contribute to Johan Group’s earnings in the future to turnaround the group, ” Johan said.
It said based on the unaudited financial statements for the 12 months ended Jan 21, 2021, the revenue contributed by DCS and DPPL amounted to RM62.382mil, representing approximately 67.33% of the total revenue of Johan.
In March, Johan announced its foray into the rubber glove manufacturing business, despite many investors shying away from the sector.
The group has proposed the construction of up to a 42-production line glove manufacturing plant under its subsidiary, Dynacare Sdn Bhd, to diversify into the manufacturing and marketing of examination and surgical gloves.
The commercial production for the first production line is expected to commence at the end of next month. It estimated that a total of six production lines to be fully operational by the end of December 2021.