KUALA LUMPUR (Apr 16): MAA Group Bhd said today it has aborted its plan to invest in an independent oil producer in Kaliningrad, Russia after assessing the risks associated with the potential investment.

In a filing with Bursa Malaysia today, MAA said it will now use the RM28 million from the proceeds of its stake sale in MAA Takaful Bhd to focus on acquiring new businesses and/or assets to enhance the group’s earnings profile, regulate its financial condition and address its Practice Note 17 (PN17) status.

"Relevant announcement(s) will be made by the company where required," it added.

On June 30, 2016, MAA had completed the disposal of its entire 75% stake in MAA Takaful Bhd to Zurich Insurance Co Ltd for RM393.75 million.

However, the actual disposal proceeds arising from the disposal amounted to RM364.4 million, or RM29.35 million less, due to certain downward adjustments in accordance with the terms and conditions of the share purchase agreement dated May 4, 2016.

As at April 3 this year, MAA said it had yet to fully utilise RM233.88 million of the disposal proceeds. Apart from the RM28 million for the potential investment in the Russian oil producer, it had proposed to retain RM40.25 million for future investment opportunities and RM30.85 million for working capital requirements including staff costs, office rental and other payables.

MAA had also proposed to pay RM32.82 million as dividends for its shareholders for its 2018 and 2019 financial years, after having issued RM8.21 million in dividends for its 2017 financial year.

MAA shares closed unchanged at 68 sen per share today, bringing it a market capitalisation of RM184.99 million.