KUALA LUMPUR (Dec 6): Ireka Corp Bhd said it is disposing of its remaining 31.4% stake in Mobilus Sdn Bhd to Hungary-based Greenway Urban Traffic (Europe) Co Ltd (GUTE) for RM1.845 million. 

The property and construction group had earlier on Nov 30 announced the sale of 19.6% of its then 51% stake in Mobilus to related party Eccaz Sdn Bhd.

Mobilus was formed as a joint venture between Ireka and GUTE in 2019. It is currently at a pre-operating stage, with the intended business activities principally in the sale of industrial and commercial vehicles.

GUTE is a member of China-based CRRC Group, the world’s largest manufacturer of rolling stock and rail related products and system.

In a filing with Bursa Malaysia, Ireka said the investment in Mobilus, being a joint venture with GUTE, will require a long gestation period and Mobilus does not currently have any projects on hand.

“The proposed disposal will enable the Ireka Group to realise cash inflow of approximately RM1.845 million, which will strengthen its working capital position. 

“The proposed disposal is not expected to have any material financial effects on its earnings for the financial year ending March 31, 2022, save for the potential write-down for loss on investment in the joint venture of approximately RM2.86 million,” the group said. 

Ireka’s shares closed up one sen or 1.56% at 65 sen on Monday (Dec 6), valuing the group at RM146.5 million.