Iris to divest 25% equity interest in VCB

PETALING JAYA: Iris Corp Bhd's wholly-owned subsidiary Iris Healthcare Sdn Bhd (IHSB) is disposing of 27.66 million shares or a 25% interest in Versatile Creative Bhd (VCB), for RM15.21 million.
In a filing with Bursa Malaysia last Friday, Iris Corp said IHSB had entered into a share sale agreement with RICA Holdings (M) Sdn Bhd (formerly known as RICA Properties (M) Sdn Bhd) for the proposed divestment.
The disposal consideration of 55 sen per VCD share represents a discount of 35 sen or 38.89% over the audited net assets per VCB share of 90 sen as at March 31, 2014 and a discount of 22 sen or 28.57% over the unaudited net assets per VCB shares of 77 sen as at June 30, 2014.
"Based on the audited financial year ended March 31, 2014 (FY14) and unaudited three-months financial period ended June 30, 2014, the proposed divestment would result in a gain on disposal of approximately RM2.28 million and RM2.40 million respectively," it said.
It plans to utilise the disposal consideration within 12 months from the date of receipt to settle the outstanding borrowings incurred by IHSB pursuant to the VCB offer.
The proposed divestment will reduce IHSB's equity interest in VCB from 64.6% to 39.6%, to comply with Section 17 of the Act. The proposed divestment is expected to be completed within a month. AmInvestment Bank has been appointed as the principal adviser for the proposed divestment.