KUALA LUMPUR (Jan 29): Integrated Logistics Bhd (ILB) announced today plans to dispose of its entire 50% stake in its loss-making unit in Dubai, Integrated National Logistics DWC-LLC (INL), to a shareholder, for 45 million dirham (RM50.4 million).

In an exchange filing today, the group said it accepted the offer to purchase from National Trading & Developing Est (NTDE) after deliberating for six days but will further negotiate on terms and conditions.

NTDE is solely owned by Hassan Mohammad Kazem Ahmadi, who held a 2.64% stake in Integrated Logistics as at February 2018. The company was incorporated in Dubai in 1982 and provides distribution, logistics, and retail services for the Middle East region.

Meanwhile, INL was incorporated in Dubai in October 2006 before commencing operations six years later. It is principally involved in the logistics, freight forwarding and provision of warehousing related services.

“The rationale in accepting the offer was INL has incurred losses every year since it started operations in October 2012 and is projected to incur losses in future years,” said ILB.

“In addition, ILB has funded the annual cash flow deficits in INL over the last six years and projected to inject additional funding into INL to sustain its cash flow deficits in the future years,” it added.

As at Dec 31, 2017, INL has accumulated losses of 114.19 million dirham (RM127.55 million), the filing showed.

At market close today, the thinly-traded stock was unchanged at 45 sen, valuing ILB at RM85 million.