PETALING JAYA: Wong Engineering Corporation
Bhd (WEC) is disposing of a 10% equity interest in associate company Broadway Lifestyle Sdn Bhd (BLSB) for RM6.27mil in cash as the precision engineering group seeks to monetise part of its investment portfolio and strengthen its core business.
The company said it had entered into a share sale agreement with Econ Property Management Sdn Bhd on July 21 to dispose of 250,000 ordinary shares and 5.15 million redeemable non-cumulative preference shares in BLSB. Upon completion, WEC's stake in the property investment company will be reduced from 35% to 25%.
WEC said the disposal consideration was arrived at on a willing-buyer, willing-seller basis after taking into account its investment cost and BLSB's estimated net assets and liabilities. The purchaser will pay RM5mil upon execution of the agreement, with the remaining RM1.27mil payable within three months.
The company said the exercise is intended to rebalance and monetise its investment portfolio to support business momentum in its core precision engineering segment. The proceeds will be used for working capital and to repay bank borrowings.
Based on WEC's audited financial statements for the financial year ended Oct 31, 2025, the proposed disposal is expected to generate an estimated gain of RM3.22mil. However, it is not expected to have a material impact on the group's earnings, earnings per share, net assets, gearing, share capital or substantial shareholders' shareholdings for the financial year ending Oct 31, 2026.
The disposal is expected to be completed by Oct 21, 2026, and is not subject to shareholders' approval. The board said the transaction is in the best interests of the company.
