KUALA LUMPUR: WZ Satu Bhd is disposing its marketing unit, WZ Marketing, for a total cash consideration of RM6.1 million to the group's managing director Tan Ching Kee.

In a Bursa Malaysia filing this afternoon, WZ Satu said the proposed sale was to unlock its investment in the unit as WZ Marketing had been posting lacklustre financial results.

"For the past financial years, WZ Marketing has also relied heavily on financial support from WZ Satu through inter-company advances to sustain its business," it said.

"Additionally, the proposed disposal is intended to facilitate the group's efforts in cultivating the growth of its new oil and gas business as the net proceeds arising from the proposed disposal may be used to partially finance the cash portion of the purchase consideration," it added.

As at Aug 31, the net amount owing from WZ Marketing to the group was RM16.5 million.

The proposed sale is expected to be completed by the second quarter next year.

At 2.53 pm, WZ Satu was trading one sen higher at RM1.90 for a market capitalisation of RM479.92 million