Eonmetall to dispose of Zambian firm in African exit

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KUALA LUMPUR (May 15): Eonmetall Group Bhd is exiting Africa.

In a bourse filing, the metalwork company announced the disposal of its entire 93.33% stake in Eonmetall Investments Zambia Limited (EIZL) for RM2, adding that the disposal was in line with its “strategy to revisit investments on the African continent to realign focus and concentration of time and effort for better investment return”.

The principal activity of EIZL is mining and manufacturing.

The disposal will result in an estimated loss upon disposal of approximately RM4,793 at the consolidated level but will not have any material effect on its earnings, net assets and gearing for the financial year ending Dec 31, 2019.

Eonmetall said its wholly-owned subsidiary Eonmetall International Limited has entered into a share sale agreement with Grand East Metal (Kulim) Sdn Bhd for the disposal.

Shares of Eonmetall closed unchanged at 40 sen, valuing it at RM74.17 million. The counter has retreated about 28.57% over the past year.