KUALA LUMPUR (May 15): Fitters Diversified Bhd is selling its China unit, Liangshan Future NRG Biology Electric Power Co Ltd, for RMB40 million, equivalent to about RM25.2 million, as part of its move to divest non-operating assets, streamline its business operations and to redeploy its resources for better returns.

"Upon completion of the proposed disposal, the group is expected to record a loss on disposal of RM9.3 million," said Fitters in a Bursa Malaysia filing today.

The unit is principally involved in the building and operating of the Liangshan Biomass Power Plant. It is currently parked under Fitter's subsidiary, FITTERS-NRG Sdn Bhd.

Fitters said the price tag for Liangshan Future NRG was arrived at after a due diligence exercise on the unit.

FITTERS-NRG inked a share sale agreement with the buyer, Shandong Yongneng Energy-Conserving and Eco-Friendly Services Holding Corp, on Saturday (May 13).

Shandong Yongneng is a subsidiary of Shandong Water Development Group approved by and registered as an energy-conservation service provider with the State Council of Shandong Province, said Fitters.

Fitters expects the disposal to be completed within six months. Prior to the completion of the disposal, FITTERS-NRG will settle all liabilities of Liangshan Future NRG, estimated to be RMB600,000 or RM378,060.

Fitters shares dipped half sen or 1.22% to 40.5 sen at 2.52pm, giving it a market capitalisation of RM189.02 million.