KUALA LUMPUR (Nov 19): Ni Hsin Resources Bhd today sold off its 10% stake in undergarments manufacturer Caely Holdings Bhd to Penang-based businessman Datuk Seri Goh Choon Kim for RM9.6 million.

In a filing with Bursa Malaysia today, Ni Hsin said the expected gain from the disposal of the stake comprising eight million shares is RM1.5 million.

"The proceeds arising from the disposal shall be utilised for working capital of the group and the expected timeframe for full utilisation of the said proceeds is within 12 months from the date of the disposal," it said.

Ni Hsin said it decided to hive off the stake because efforts to leverage on the customer bases of both companies had not been fruitful, as the profiles of the customers are not compatible for the intended products.

Besides that, the offer price for the Caely shares were higher than the current open market price traded in the stock market.

"Thus, the board feels that it is in the best interest of the company to realise the gains on the investment," Ni Hsin said.

Goh, 57, is the chairman of GTM Property, which has interests in property development, as well as hospitality and leisure.

He emerged as Caely's substantial shareholder on Aug 27, with 25.9 million shares or a 32.16% stake.

Ni Hsin’s share price closed down 0.5 sen or 1.7% at 29 sen today with a market capitalisation of RM85.2 million.

Caely closed three sen or 2.78% lower at RM1.05 for a market capitalisation of RM85.06 million.