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KUALA LUMPUR, March 22 -- MMAG Holdings Bhd's unit Line Clear Ventures Holdings Sdn Bhd (LCVH), is selling a 15 per cent stake in wholly-owned subsidiary Line Clear Express & Logistics Sdn Bhd (LCEL) to KTG Bhd for RM22 million cash.
In a filing with Bursa Malaysia, MMAG said LCVH today entered into an agreement with KTG for the proposed disposal.
LCEL, which is in the courier and logistics business, posted a loss after tax of RM20.96 million for the financial year ended March 31, 2020, and incurred an unaudited loss of RM20.85 million for the 10 months ended Jan 31, 2021.
MMAG said KTG’s 15 per cent investment would result in a strategic partnership between it and the KTG group for mutual business and support.
"This provides the MMAG group an advantageous platform and better earnings prospect in the future, as well as reducing its dependency on internal resources for network expansion," it said.
MMAG, a company engaged in offering information and communication technologies solutions, said the proceeds received from the disposal would be mainly used for working capital purposes and to fund future business expansions.
"Barring any unforeseen circumstances, the board expects the proposed disposal to be completed in the second quarter of 2021," it said.