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Johan Disposes Subsidiary For RM49 Million
Malaysia Daily Bulletin | 07 October 2015
By:
  • Johan Holdings’ wholly-owned subsidiary, Abacus Pacific NV, is selling its 66.1 percent equity interest in Jacks International to Creative Elite Holdings for $15.9 million (RM48.7 million).
  • A sale and purchase agreement has been signed to dispose Abacus’ 19.8 million shares at $0.80 per sale share. Upon completion, Jacks will cease to be a subsidiary of the group.
  • The firm noted that the proposed disposal represents a good and timely opportunity to divest the sale shares and to unlock shareholder value as the sale price represents a substantial premium of 90.5 percent over Jacks’s last traded quoted share price of $0.42 as at 5 October.

Significance: The move is also in line with with the measures implemented by the board to divest non-core business and loss making subsidiaries, which have a negative impact on the profitability. The sale will result in a gain of about RM25.6 million, which Johan intends to use for working capital of the group.


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