Pan Malaysia Holdings soar 14% on controlling stake sale to Yu Kuan Chon

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KUALA LUMPUR (Dec 15): Pan Malaysia Holdings Bhd soared as much as 1.5 sen or 13.64% to 12.5 sen on news Malayan United Industries Bhd (MUI) is selling its 69.19% stake in the company to Datuk Dr Yu Kuan Chon for RM77.12 million.

Dr Yu is the chairman and executive director of YNH Property Bhd.

At 12.30pm, Pan Malaysia Holdings, a hotel and financial services entity, saw some 6.4 million shares changed hands. However, MUI fell 0.5 sen or 2.2% to 22.5 sen with about 12 million shares done.

For comparison, the FBM KLCI declined 29.25 points or 1.69% to 1,703.74.

Last Friday, MUI said it was selling its Pan Malaysia Holdings stake to Dr Yu in in a move to divest non-core assets. The sale proceeds of RM77.12 million
will be used to reduce MUI's bank borrowings and finance working capital needs.

MUI said about RM60 million would to used to repay MUI’s bank loans while the balance would be earmarked for working capital. MUI is controlled by tycoon Tan Sri Khoo Kay Peng.