Iris Corp to dispose of 80% stake in unit for RM70mil

KUALA LUMPUR: Iris Corporation Bhd (Iris Corp) has entered into a shares sale agreement (SSA) with Tass Tech Technologies Sdn Bhd (Tass Tech) for the disposal of 80 per cent equity interest in its unit, Iris Information Technology Systems Sdn Bhd (IITS), for RM70 million in cash.

In a filing with Bursa Malaysia, Iris Corp said the proposed disposal would enable the company to unlock its investment in IITS, and the disposal consideration will contribute positively to its cash flow.

"The proceeds arising from the proposed disposal will be used for working capital for the existing businesses and any future business expansions undertaken by the group.

"The estimated timeframe for such utilisation shall be within 18 months from the date of receipt of the disposal consideration,” it said.

Iris Corp said the proposed disposal is expected to be completed in August 2023 upon full settlement of disposal consideration by Tass Tech within six months from the date of the SSA.

"Upon completion of the proposed disposal, the company is expected to realise a gain of RM7.22 million in the financial year ending March 31, 2024,” it said.

As at the date of SSA, the total issued and paid-up shares capital of IITS is six million ordinary shares and RM6 million, respectively.

Based on IITS’s latest audited financial statement for the financial year ended March 31, 2022, the net profits attributable to the company and net assets value are RM480,000 and RM37.50 million, respectively. - Bernama