Omesti to gain RM25m from sale of Formis

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KUALA LUMPUR (July 15): Omesti Bhd has sold its entire stake in Formis E Solutions Sdn Bhd to CTOS Holdings Sdn Bhd for RM26.88 million cash.

The group is expected to realise a gain of RM24.62 million from the disposal, after taking into account the original cost of investment in Formis was RM12.48 million on Oct 8, 1993.

Omesti said the disposal was carried out after reviewing the group's investment portfolio and overall market conditions.

The net proceeds from the disposal will be used for working capital, it added.

In a filing with Bursa Malaysia today, Omesti said it, together with its wholly-owned subsidiary Man Yau Holdings Bhd, had on Friday (July 12) entered into a share purchase agreement with CTOS for the disposal.

Formis will cease to be a subsidiary of Man Yau and consequently a subsidiary of Omesti.

Formis is engaged in the development of application software, system integration services and the provision of hardware and software maintenance services but has been dormant since 2014. Formis holds a 16% equity interest in RAM Credit Information Sdn Bhd, which provides credit reporting business, credit bureau and information services.

Omestis said the group's earnings per share is expected to increase by 5.71 sen, while the net assets per share is expected to increase by 6.24 sen following the disposal. Gearing ratio is expected to decrease from 54.28% to 46.77%.

As at 3.16pm, Omesti shares were untraded today. The stock last closed at 41 sen, bringing a market capitalisation of RM193.67 million.