MAA Group sells loss-making card business for RM1m

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GEORGE TOWN (Sept 8): MAA Group Bhd’s wholly-owned subsidiary MAA Corp Sdn Bhd has proposed to dispose of its entire issued share capital of loss-making MAA Cards Sdn Bhd to eProtea MSC Sdn Bhd for RM1 million.

In a filing with Bursa Malaysia today, MAA Group said the sale proceeds from the proposed disposal, which saw MAA Corp entering into a conditional share sale agreement with eProtea, would be used as working capital for the group.

“The total consideration for the sale of shares shall be the aggregate of RM1 million and the amount equivalent to the final net current asset of MAA Cards on completion date.

“The proposed disposal will not have any effect on the issued and paid-up share capital and substantial shareholding structure of the group as it does not involve any issuance of new MAA Group shares and would not have any material effect on the earnings and net assets of MAA Group,” it said.

MAA Group (fundamental: 0.3; valuation: 2.55) closed half sen or 0.65% at 77 sen, with a market capitalisation of RM224 million.

(Note: The Edge Research’s fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)