KUALA LUMPUR: Mulpha Strategic Ltd (MSL), a unit of Mulpha International Bhd (MIB), has sold its 19.9% stake in PBD Developments Ltd (PBD) for A$19.39 million (RM55.06 million) to Oasis Star Ltd, a wholly-owned subsidiary of Tian An China Investments Co Ltd.
The stake disposal, which was completed yesterday and for which MSL received payment in Hong Kong dollars of HK$112.13 million (RM55.06 million), was expected to net MSL a gain of A$1.85 million (RM5.24 million).
“After taking foreign exchange losses into account, MSL recorded a net gain of RM3.05 million from the disposal,” said Mulpha International in a filing with Bursa Malaysia.
MSL is a wholly-owned unit of Mulpha Group Services Sdn Bhd, which is in turn wholly-owned by Mulpha International (fundamental: 0.8; valuation: 0.9) which said the disposal is part of its effort to streamline its assets and capitalise on its investment in PBD which has not grown to its expectation.
“Mulpha International Group originally invested in PBD in 2013 with the intention of using PBD’s operations in Western Australia as a platform for the group to expand its property development and investment activities into this region.
“In view that PBD had not expanded to a size that is significant to the Mulpha International Group, the group decided to refocus on its existing core property development and investment assets in the east coast of Australia,” it said.
The proceeds of the disposal will be used for working capital requirements within two years from the completion of the disposal, it said. MIB shares closed half a sen lower at 34.5 sen yesterday, with a market capitalisation of RM746.78 million.
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This article first appeared in The Edge Financial Daily, on July 21, 2015.