KUALA LUMPUR (June 25): KUB Malaysia Bhd has disposed of its 40% equity interest in KUB-Berjaya Enviro Sdn Bhd (KUBE) to Berjaya Group Bhd for RM80 million.
KUBE is principally involved in waste treatment and electricity generation.
The stake sale to Berjaya, which owns the remaining 60% of KUBE, was completed today, KUB said in a filing to Bursa Malaysia.
The disposal consideration was arrived at on a willing buyer-willing seller basis, KUB said, adding that the proceeds would be used to finance the group’s operating expenses, fund expansion of its core businesses, and explore further business opportunities.
KUB said the proceeds could also be used to retire the existing loans of the group, leading to a lower interest expense and gearing ratio.
“The disposal would enable KUB to realise its investment that is not considered strategic or synergistic to the other operations of the group, and represented an opportunity for KUB to unlock a significant gain in the value of the investment in KUBE and strengthen its liquidity and cash flow position,” it added.
KUB shares closed flat at 39 sen with 4.18 million units done. This values the group at RM217.02 million.