PETALING JAYA: JAG Capital Bhd is disposing of its 30% stake in oil palm management firm Sinong Sepadu Sdn Bhd (SSSB) to Sinong Enterprise Sdn Bhd for RM44.3mil.
In a filing with Bursa Malaysia, JAG Capital said the purpose of the disposal was because the parties have different views and priorities on certain key matters relating to the affairs, operations and business of SSSB.
“As the group holds a 30% of the equity interest, it does not occupy a controlling position to direct the business activities of SSSB.
“The proposed disposal presents a timely opportunity for JAG Capital to realise a pro forma gain on disposal of RM17.424mil and is expected to enhance the group’s net assets and earnings position.
Consequently, JAG Capital said the group will be better positioned to deliver more sustainable returns to its shareholders.
“The proposed disposal is expected to raise gross cash proceeds of RM44.3mil which are expected to be used for general working capital purposes within 12 months from the completion date.”
