PETALING JAYA: Wong Engineering Corp 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 deal, with the remaining RM1.27mil payable within three months.
