KUALA LUMPUR (July 19): Nexgram Holdings Bhd has embarked upon an internal corporate restructuring (ICR) of its wholly-owned subsidiary Nexgram Land Sdn Bhd and its group of companies to enable a more efficient administration of the organisation.

Nexgram said the restructuring involves segregating the business segments of the group into the respective subsidiaries carrying out the activities.

"By doing so, each subsidiary will focus more on the core business, will strengthen the control of their strategic plans, as well as (provide for) better risk management," it said in a filing with Bursa Malaysia today.

Under the exercise, Nexgram Land’s business as developer and property management will be assigned to two other wholly-owned subsidiaries of Nexgram.

"The business (of) property developer will be novated to Nexgram Development Sdn Bhd, which is handling the sole project at Cyberjaya, Selangor known as Angkasa Icon City. Nexgram Development will also engage a professional management consultant to handle the project," said Nexgram.

"The business (of) property management of Nexgram Tower at Bangsar South here, meanwhile, will be assigned to Nexgram Assets Sdn Bhd," it added.

Nexgram said upon completion of the ICR, Nexgram Land will be able to focus on the business of property investment.

Nexgram added that Nexgram Land is also in the midst of divesting its investments in its wholly-own subsidiaries in order to fully focus on the future business.

"The ICR is to streamline the group's business activities in the long run to focus on the property development business with the brand new start and diversify into other businesses. The ICR will also provide the best management in administration and manpower skills, know-how and intellectual capital effectively," it noted.

As the ICR is within the Nexgram group, there is no effect on the group level.

Nexgram shares closed 14.29% or 0.5 sen lower at 30 sen today, with 956,900 shares done, bringing it a market capitalisation of RM58.47 million.