KUALA LUMPUR (April 23): Utusan Melayu (Malaysia) Bhd is disposing its 40% stake in Swan Malaysia Sendirian Bhd (Swan) to Germany-based Schwan-STABILO Schwanhäußer Finanzholding GMBH (Schwan) for RM31.8 million, resulting in a gain of RM3.62 million.

Schwan already has a 60% stake in Swan.

In a filing with Bursa Malaysia today, Utusan said it entered into the sale and purchase agreement today.

It said the proposed disposal will enable it to realise the gain on its investment of about RM3.62 million.

On top of that, the group also said it has limited control over Swan’s management and decision making, since it only owns 40% of equity interest.

Swan is principally involved in the manufacturing and trading of educational aids, writing instruments and related products, which is not Utusan’s core business activities.

“The proposed disposal will therefore enable the management of Utusan to concentrate its business operations on publication, printing and distribution of newspapers, which are the company’s core business activities,” the group said.

Utusan said it will utilise bulk of proceeds from the disposal as working capital. It expects the corporate exercise to be completed by the first half of 2015.

The proposed disposal is subject to shareholders’ approval.

The group’s share price retreated half sen or 0.72% to 68.5 sen today, giving it a market capitalisation of RM76.41 million.

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