KUALA LUMPUR (May 8): Bonia Corp Bhd is disposing of its wholly-owned subsidiary Maha Asia Capital Sdn Bhd to its group executive chairman cum chief executive officer Chiang Sang Sem for about RM15 million.

In a filing with Bursa Malaysia, Bonia said it is divesting the property investment unit at a premium to the market value, earning a net gain on disposal of RM4.82 million.

Bonia will be using the bulk of the proceeds to repay its bank borrowings.

“The cash inflows from the proposed disposal will enable Bonia to pare down its bank borrowing and reduce its gearing,” said the group.

The disposal is expected to be completed within seven months, it added.

Shares in Bonia closed unchanged at 40.5 sen for a market capitalisation of RM326.29 million. Over the past 12 months, the stock has fallen by 37.11%.