PETALING JAYA: Lotus Circular Bhd plans to exit the retail business by disposing of its 55% stake in leather goods retailer Miroza Leather (M) Sdn Bhd for RM38mil in cash.
This will result in Lotus focusing purely on its core waste recycling operations.
The company said in a Bursa filing it had entered into a conditional share sale agreement with Trend Navigator Sdn Bhd for the disposal of its 4.73 million shares in Miroza, representing 55% of the retailer's issued share capital.
Upon completion, Miroza will cease to be a subsidiary of Lotus, it said.
Lotus added the disposal consideration was arrived at on a willing buyer-willing seller basis after taking into account an independent valuation of between RM33.34mil and RM40.11mil for the stake, placing the agreed price within the assessed fair value range.
Lotus noted the disposal reflects a timely opportunity to unlock the value of its investment in Miroza, whose profitability has declined in recent years amid a challenging retail environment. The proposed disposal is still subject to shareholders' approval and is expected to be completed by the first quarter of 2027.
