KUALA LUMPUR (Sept 28): Tadmax Resources Bhd is divesting its entire stake in wholly-owned Usama Industries Sdn Bhd to individuals Phua Bok Chuan and Nai Kin Nai Chooi for RM1.99 million.
Tadmax said it has entered into a share sale agreement for the proposed divestment aimed at realising the net assets value of an inactive entity.
Property developer Tadmax added that the proceeds from the sale will be channeled to working capital purposes, including overhead expenditure.
It does not expect the sale to have any material impact on the company’s earnings and net assets for the financial year ending Dec 31, 2015.
Usama Industries’ primary activity was the extraction and trading of timber logs, but the company has been dormant since July 2010 after the expiration of its timber concession in the District of Kapit, Sarawak.
Tadmax (Valuation: 0.9; Fundamental: 2)’s original cost of investment in Usama Industries was RM200,000 in Aug 1993. The original cost of investment was reduced by RM100.08 million following the payment of dividend out of pre-acquisition profits during the financial year ended Dec 31, 2005.
(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.)