DKSH Holdings sells performance materials unit

In a filing with Bursa Malaysia, DKSH Holdings said the deal was inked on Dec 23, 2021 and the proposed sale of DPMM is expected to be completed on or before Jan 31, 2022.All proceeds from the proposed sale will be used to repay loans from financial institutions.

PETALING JAYA: DKSH Holdings (M) Bhd is selling its wholly-owned subsidiary DKSH Performance Materials Malaysia Sdn Bhd (DPMM) for RM18.86mil cash to DKSH Switzerland Ltd.

In a filing with Bursa Malaysia, DKSH Holdings said the deal was inked on Dec 23, 2021 and the proposed sale of DPMM is expected to be completed on or before Jan 31, 2022.All proceeds from the proposed sale will be used to repay loans from financial institutions.

DPMM provides services to performance materials clients, and the company is engaged in the provisioning of market expansion services, which range from marketing to providing sales force, distribution and logistics, invoicing and credit control, handling of inventory and returned goods and other value added services.

The deal will see DKSH Holdings recording a gain on disposal (after tax and expenses) of RM8.43mil and increase its earnings per share by 5.35 sen in the financial year ending Dec 31, 2021 (FY21).

DKSH Holdings said the valuation for DPMM conducted by an independent external valuer on Nov 22, 2021 was from RM21.3mil to RM24.4mil based on the income approach.

DKSH Holdings added that DPMM’s disposal price also took into consideration its unaudited net assets of RM10.43mil and total investment cost of RM12.5mil as at Dec 17, 2021.

The group said the proposed sale will allow it to focus solely on healthcare and consumer goods business in Malaysia, which is its primary business.