KUALA LUMPUR (Aug 20): Genting Bhd sold its 100% stake in a China-based electricity-generation company for US$4.02 million (RM16.51 million).

In a filing with Bursa Malaysia, Genting (fundamental: 2.1; valuation: 1.4) said Genting Power China Ltd, an indirect wholly-owned subsidiary of Genting, had completed the disposal of the entire stake in Coastal Wuxi Power Ltd (CWP) to Ding Feng and Wang Zhi Wei yesterday.

"CWP is an investment holding company incorporated in the Cayman Islands which owns 60% equity interest in Wuxi Huada Gas Turbine Electric Power Company (Wuxi Huada). Wuxi Huada owns and operated a 42MW peaking power plant in Wuxi, Jiangsu Province, China. The Wuxi Power Plant was shut down in 2008.

"The consideration was determined on a willing buyer-willing seller basis taking into consideration the net assets of the Wuxi Power Plant. The disposal is not expected to have any material impact on the earnings or net assets of the Genting group for the financial year ending Dec 31, 2015," Genting said.

Genting's move to sell its electricity-generation asset in China came at a time when the ringgit had weakened against the US dollar after China devalued its currency. As the sale was done in US dollars, a weaker ringgit translates into higher proceeds in ringgit terms.

Today, ringgit depreciated against the US dollar at 4.1100 amid lower crude oil prices. Compared to the yuan, the ringgit weakened to 0.64224.

At 10.45am, Genting shares fell three sen or 0.4% to RM7.19 for a market capitalisation of RM26.75 billion.

The stock saw 702,200 shares change hands.

(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.)