KUALA LUMPUR (March 8): Seacera Group Bhd is disposing of a 60% stake in its 80%-owned construction outfit Spaz Sdn Bhd for RM12 million cash.
Seacera said the disposal is in line with the group's strategic direction to streamline and restructure its operation in order to focus on businesses that are viable and profitable in the mid to long term.
The expected gain on the disposal is approximately RM8 million based on Seacera's original investment cost in SPAZ of RM16 million.
In a filing with Bursa Malaysia today, Seacera said it has entered into a sale and purchase of shares agreement with Vestime Synergy Sdn Bhd for the disposal. Muhammad Faris Rosman is the sole shareholder and director of Vestime Synergy, which is engaged in the construction of building and electrical wiring and fittings.
Seacera said SPAZ has completed over 70 projects in the past, with a contract value of more than RM600 million.
"The disposal is not expected to have any material impact on the group's earnings for the financial year ending Dec 31, 2019," it added.
Shares of Seacera fell one sen or 2.63% to close at 37 sen today, with 26.8 million shares done, bringing a market capitalisation of RM163.41 million.