KUALA LUMPUR: MKH Bhd is divesting its wholly-owned Vast Furniture Manufacturing (Kunshan) Co Ltd, in China for RM49.53 million as part of efforts to streamline operations and focus on core businesses.
In a filing with Bursa Malaysia, the company said its unit Metro Kajang (Oversea) Sdn Bhd had signed a share transfer agreement with Kunshan Meiao New Energy Technology Co Ltd (KMNET) for the disposal of its entire stake in Vast Kunshan.
The cash consideration of 84 million yuan (RM49.53 million) will be settled in stages, with an initial deposit of two million yuan already received.
The transaction also includes an additional cash adjustment based on Vast Kunshan’s net cash balance at completion, estimated at between RM2.51 million and RM2.65 million.
Vast Kunshan, established in Jiangsu province in 1999, is involved in furniture manufacturing and property leasing.
Its assets include a 40,140 square metre parcel of land with six industrial buildings and related infrastructure.
MKH expects to record a gain of about RM26.55 million from the disposal, which is targeted for completion by Dec 31, 2025.
The group said the move is consistent with its strategy to concentrate on its core businesses in property development and construction, oil palm plantations and property investment.
© New Straits Times Press (M) Bhd
