KUALA LUMPUR (July 4): Computer software and hardware consulting company Diversified Gateway Solutions Bhd (DGSB) is disposing of its entire stake in ISS Consulting (Thailand) Ltd for THB236.43 million (approximately RM32.03 million) cash.
The company will declare a special dividend of 0.8 sen per share with part of the proceeds.
The divestment is a move to unlock and realise the value of its overseas investment in the company, said the company in a filing with Bursa Malaysia this evening.
DGSB said it had today entered into a share sale agreement with itelligence AG for the purpose of the disposal.
The principal activities of ISS Thailand are the provision of advisers and consultants for computer software solutions.
DGSB said the proposed disposal provides an opportunity for the company to unlock and realise the value of its overseas investment in ISS Thailand, especially with the strong Thai baht, to bring the foreign exchange investment and earnings back to invest further into its existing operations in Malaysia.
"Upon completion of the proposed disposal, DGSB will continue its digital media and infrastructure services in Malaysia, and also grow its food technology and manufacturing business," it said.
DGSB said RM32.03 million proceeds of the disposal will be utilised for capital expenditure and working capital requirements for the expansion of its food technology and manufacturing business, payment of incentives, repayment of the group's bank borrowings, and a proposed special dividend.
The proposed disposal is expected to be completed in the third quarter of 2019.
Shares of DGSB closed unchanged today at 11 sen with a market capitalisation of RM82.03 million.