KUALA LUMPUR (Oct 6): Johan Holdings Bhd sold a 66.08% stake in Singapore-listed Jacks International Ltd for S$15.86 million (RM48.72 million). The move was intended to unlock the value of the stake and sell non-core and loss-making units.

In a statement to Bursa Malaysia today, Johan said it sold 19.83 million shares in health food distributor Jacks to Creative Elite Holdings Ltd.

Johan owns the Jacks shares via Abacus Pacific N.V. Prior to the sale, Johan owned 86.75% in Jacks, according to Bloomberg data.

Johan said it had held its Jacks stake since 1987 and after today's share sale, Jacks would no longer be Johan's subsidiary.

"The original cost of investment of the sale shares in JIL (Jacks) was RM13,576,000, which was made on July 1, 1987. The proposed disposal will result in the Johan group recognising a gain of approximately RM25,547,891.

"The sale consideration will be utilised for working capital requirements of companies in the Johan group," Johan said. Johan's diversified businesses include ceramic tile production and real estate development.

According to Johan, it had today sold the Jacks shares at S$0.80 (80 cents) each. The price is a premium to Jacks' latest reported net assets per share of 43.8 cents.

In Malaysia, Johan shares rose 0.5 sen or 4% at 12.30pm to its highest so far today at 14 sen for a market capitalisation RM87.2 million.

The stock saw 289,000 shares done.

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