KUALA LUMPUR (April 21): Integrated Logistics Bhd announced it has signed a share sale agreement with Bee Sun Sdn Bhd to dispose of its 100% stake in Feel Solar Sdn Bhd, which was held via IL Energy Sdn Bhd, for RM2.98 million.
"Integrated Logistics has decided to focus on investments in large-scale solar photovoltaic (LSSPV) plants introduced by the Energy Commission (EC) in 2016," the Main Market-listed company said.
"As Feel Solar is no longer part of Integrated Logistics' business plans, it is in our best interests to dispose of Feel Solar," the company added, noting that its board of directors is of the opinion that the disposal is in Integrated Logistics' best interest.
Integrated Logistics first invested in Feel Solar in July 2015, after it acquired 100,000 shares — equivalent to a 100% stake — for RM115,388 from three individuals: Leow Woon Sheng, Ang Yok Chin and Khaw Cheow Heem.
In its Annual Report 2016, Integrated Logistics described Feel Solar's business as the trading of solar related goods and designing, installation and commissioning of solar photovoltaic systems and other renewable energy related system.
Feel Solar, said Integrated Logistics, has total assets of RM112,012, comprising cash and cash equivalents of RM99,743.
It is worth noting that last month, Integrated Logistics announced that its indirect subsidiary has received a conditional approval from the EC to build a large scale-solar farm in Bandar Bukit Kayu Hitam, Kedah, with a capacity of 10 megawatt.
Early this month, Integrated Logistics also saw a new investor — Etern Group (HK) Co Ltd — emerged as a substantial shareholder after the latter acquired 17 million shares, equivalent to an 8.96% stake, via a private placement exercise.
Founded in 1978, Etern is based in Wujiang, China, with a business that covers optical fibre cables, real estate, road transportation, automobile sales service, and medical and healthcare.
Integrated Logistics shares paused 0.5 sen or 0.6% lower at 82.5 sen during noon-break today, for a market capitalisation of RM160.9 million.