Sunzen Group To Dispose Of Two Subsidiaries For RM17.3 Mln
KUALA LUMPUR, Feb 18 (Bernama) -- Sunzen Group Bhd has entered into a sale and purchase of shares agreement to dispose of its whole equity interests in two subsidiaries to Pure Nutritional Products Sdn Bhd for RM17.30 million.
In a Bursa Malaysia filing today, the health products company said that the disposal involves two million ordinary shares in Sunzen Corporation Sdn Bhd and 500,000 ordinary shares in Sunzen Lifesciences Sdn Bhd.
“The proceeds from the disposal, after deducting all fees and expenses, shall be utilised for general working capital requirements of Sunzen Group’s day-to-day operations to support its existing business operations,” it said.
The company said that the disposal is aligned with its business strategy transformation, aimed at improving financial performance by ceasing its business operations in the animal health division.
“The disposal is expected to contribute positively to the future financial performance of the group and support its long-term strategies and objectives, hence enhancing shareholder value in the future.
“It is expected to result in a gain on disposal of approximately RM2.25 million to the group after deducting the estimated incidental expenses of RM0.36 million,” it said.
Sunzen Group said the deal is expected to be completed within three months.
-- BERNAMA