Komarkcorp ED disposes of stake in company

Komarkcorp ED disposes of stake in company
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KUALA LUMPUR (May 16): Komarkcorp Bhd's executive director Lim Pei Tiam @ Liam Ahat Kiat, 69, has ceased to be a substantial shareholder in the labels manufacturer, following the disposal of 15.62 million shares representing a 12.5% stake.

In a filing with Bursa Malaysia today, it was revealed that Lim, who has been an executive director in Komarkcorp since Aug 16, 2013, had disposed of his shareholdings last Thursday (May 12) via an off-market deal.

Komarkcorp in a separate filing to the exchange said it has varied the utilisation of the RM48 million cash proceeds from the disposal of Komark Investment Holdings Ltd and its subsidiaries Shanghai Komark Labels & Labelling Co Ltd and Guangzhou Komark Labels & Labelling Co Ltd, to include a proposed special interim dividend of 3 sen per share for each Komarkcorp share held at an entitlement date to be determined later.

In a maximum scenario, RM4.88 million of the proceeds will be set aside for the special dividend, RM21.44 million to repay borrowings, RM11.19 million for working capital, RM10 million for the purchase of new machineries and RM500,000 for disposal expenses.

Komarkcorp shares were down 0.5 sen or 1.05% to 47 sen today for a market capitalisation of RM58.58 million.