KUALA LUMPUR: Shares in Eurospan Holdings Bhd tumbled over 28% to its lowest in about 10 months.
The home furnishing manufacturer tumbled 28.39%, or 44 sen to RM1.11, its lowest since late February 2023. Year-to-date, the counter has fallen about 3.5%.
Eurospan has proposed disposing of Dynaspan Furniture Sdn Bhd (DFSB) for RM38.9mil cash to its executive chairman and largest shareholder Guan Kok Beng, managing director Guan Shaw Yin and deputy MD Guan Shaw Kee.
Its unit Eurospan Furniture Sdn Bhd is also disposing of two freehold industrial lands with buildings on-site to DFSB for RM15.65mil cash. It will lease back the properties for the next two years at RM87,671 per month.
Last month, independent adviser Mainstreet Advisers Sdn Bhd said Eurospan’s proposed RM54.55mil sale of its furniture manufacturing unit and properties in Seberang Perai to its controlling shareholder for future leaseback has been deemed “fair and reasonable”.
It noted that DFSB’s sale price, which is approximately equivalent to its adjusted net asset value of RM38.89mil.
Eurospan’s shareholders will vote on the proposals at an extraordinary general meeting Dec 8, 2023.
In the first quarter ended Aug 31, Eurospan posted a net profit of RM4.12mil, or earnings per share of 9.30 sen against a net loss of RM529,000, or loss per share of 1.19 in the same quarter a year ago.
Revenue for the period was lower at RM7mil compared with RM14.2mil achieved in the same corresponding period last year.