KUALA LUMPUR: ECM Libra Group Bhd
’s 30 per-cent-owned associate company, Positive Carry Sdn Bhd, has entered into a conditional sale and purchase agreement with Enzo II Holdings Pte Ltd to dispose of 24 million ordinary shares it owns in TYK Capital Sdn Bhd.
The group said in a filing with Bursa Malaysia today that the disposal represents 27 per cent of the total number of issued ordinary shares of TYK.
"The sale consideration payable for the proposed disposal will be in cash in the amount of RM120 million, payable in full upon completion,” said ECM Libra, adding that its 30 per cent share of the sale consideration would amount to RM36 million.
The transaction is expected to result in ECM Libra’s share of profits of approximately RM26.9 million, which derives from the difference between the group’s share of the sale consideration and the carrying value of 8.1 per cent effective equity interest of the group in TYK of RM9.1 million as at Dec 31, 2022, it said.
The group said that the deal would enable ECM Libra to realise the value of investment outside its core focus area of hospitality after an 11-year holding period.
"(Additionally), it will improve the cash flow of the group, provide liquidity for new investments and initiatives that will enhance shareholder value as well as provide additional working capital for the group’s operations,” it added.
The group also said that completion of the agreement is conditional upon certain conditions to be fulfilled by parties on or before Oct 31, 2023, or other extended periods provided in the agreement. - Bernama
