Asdion to diversify into logistics

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KUALA LUMPUR (Apr 28): Software developer Asdion Bhd has proposed to diversify its business to include logistics, following a share sale agreement it entered into with Datuk Mohamed Ridzuan Nor Md to acquire 51% of the issued share capital of TAZ Logistics Sdn Bhd for RM6 million cash.
 
“Following the acquisition of TAZ, the group expects that the operations of TAZ may contribute 25% or more of the net profit of the group and/or may result in a diversion of more than 25% of the net assets of the group to an operation which differs widely from its current operations in the near term," Asdion said in a Bursa Malaysia filing this evening.
 
The group said it would be seeking its shareholder’s approval for the proposed diversification at an extraordinary general meeting to be convened at a later date.
 
Asdion (fundamental:1.65; valuation: 0) said it had identified the logistics sector as its new business segment, in view of the attractive growth prospects of the logistics sector in Kuantan.
 
“The board believes that the proposed diversification will potentially provide the group with another profit avenue, thus improving the financial performance of the group in the future,” it added.
 
The proposed diversification is expected to be completed by the second quarter of this year.
 
Asdion shares closed unchanged at 83.5 sen today, with a market capitalisation of RM94.13 million.  

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