KUALA LUMPUR (Sept 20): PPB Group Bhd is disposing of its entire equity interest in Tefel Packaging Industries Co Ltd in Myanmar for US$2.4 million (RM10.06 million).

PPB’s 79.9%-owned indirect subsidiary Tego Sdn Bhd inked an agreement to transfer its entire 100% stake in Tefel Packaging Industries Co Ltd — a polypropylene bags manufacturer — to Messrs Natthi Cholsaipant and Tanapat Cholsaipant.

Tego’s parent company is FFM Bhd, which is owned 80% by PBB and 20% by Wilmar International Ltd via PGEO Group Sdn Bhd.

“The proposed disposal is an opportunity for the FFM group to divest an unprofitable non-core business activity,” PPB said in a filing with Bursa Malaysia.

PPB said the purchase consideration was valued according to Tefel’s net book value of fixed assets of US$1.8 million and goodwill of US$600,000, as at end-December 2016

To compete the stake sell, PPB said it will seek approval from the Myanmar Investment Commission, and the directors and shareholders of Tego.

“The directors are of the opinion that the proposed disposal is in the best interest of the group,” said PPB, which also owns the Golden Screen cinemas in the country.

PPB’s share price gained 12 sen or 0.72% to close at RM16.80, giving it a market capitalisation of RM19.92 billion.