Thursday 28 Mar 2024
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KUALA LUMPUR (March 23): Apex Equity Holdings Bhd (AEHB) said its wholly-owned subsidiary JF Apex Securities Bhd has proposed to dispose of its 43% equity interest in Apex Investment Services Bhd (AISB) to three purchasers.

According to a bourse filing, JF Apex had entered into a conditional share sale agreement with Clement Chew Kuan Hock, Asgari Mohd Fuad Stephens and Raevendran Ramachandran for a combined RM5.18 million in cash.

The group said the proposed disposal is an opportunity for it to monetise its non-core investment in AISB at a reasonable consideration, given that the activity of fund management is changing drastically in the near future.

It said all new fund management services will focus on digital fund management services provided via a digital platform, leveraging on technology instead of conventional methods.

“The proposed disposal will enable AEHB group to exit a non-core business which has been incurring losses since 2015 until to date, and is expected to continue to be loss making in the near term due to the low fund size of assets under AISB’s management.

“Further, the proposed disposal will strengthen the group’s cash flow position as the proceeds from the proposed disposal are earmarked for working capital requirements,” said the group.

It intends to use the proceeds from the disposal for working capital purposes.

The group hopes to complete the proposed disposal within six months from the date of its agreement with the purchasers.

AEHB fell one sen or 0.97% to RM1.02 today, giving the group a market capitalisation of RM217.83 million.

Edited ByLam Jian Wyn
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