PETALING JAYA (July 20): Mulpha Strategic Ltd (MSL), a unit of Mulpha International Bhd, has sold its 19.9% stake in PBD Developments Ltd (PBD) for AU$19.39 million (RM55.06 million) to Oasis Star Ltd, a wholly-owned subsidiary of Tian An China Investments Co Ltd.

The stake disposal, for which MSL received payment in Hong Kong dollars of HK$112.12 million or approximately RM55.06 million, was expected to net MSL a gain of AU$1.85 million (about RM5.24 million).

“After taking foreign exchange losses into account, MSL recorded a net gain of RM3.05 million from the disposal,” said Mulpha International.

MSL is a wholly-owned unit of Mulpha Group Services Sdn Bhd, which is in turn wholly owned by Mulpha International.

Mulpha International (fundamental: 0.8; valuation: 0.9) said the disposal is part of its effort to streamline its assets and capitalise on its investment in PBD as PBD has not grown to its expectation.

“Mulpha International Group originally invested in PBD in 2013 with the intention of using PBD’s operations in Western Australia as a platform for the group to expand its property development and investment activities into this region.

“In view that PBD had not expanded to a size that is significant to the Mulpha International Group, the group decided to refocus on its existing core property development and investment assets in the east coast of Australia,” it said.

The proceeds of the disposal will be used for working capital requirements within two years from the completion of the disposal, it said.

Mulpha International shares closed half a sen lower at 34.5 sen today, with a market capitalisation of RM746.78 million.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)