Johan sells subsidiary for S$15.86 million

PETALING JAYA: Johan Holdings Bhd’s wholly-owned subsidiary Abacus Pacific N.V. is selling its 66.08% equity interest in Jacks International Ltd to Creative Elite Holdings Ltd for S$15.86 million (RM48.7 million).
In a filing with Bursa Malaysia yesterday, Johan said Abacus Pacific signed a sale and purchase agreement with Creative Elite for the disposal of its 19.83 million ordinary shares at a price of S$0.80 per sale share.
Creative Elite also announced to SGX-ST that it intends to make a mandatory cash offer to acquire all the remaining ordinary shares in Jacks International at an offer price of S$0.80 per share, in accordance with Singapore stock exchange regulations.
Upon completion of the proposed disposal, Jacks International will cease to be a subsidiary of the company.
Jacks International is principally engaged in investment-related activities and its operating wholly-owned subsidiaries are in the business of distribution and retailing of health foods and supplements in Singapore and Brunei.
Johan said the proposed disposal represents a good and timely opportunity to divest the sale shares and to unlock shareholder value as the sale price of S$0.80 per share represents a substantial premium of 90.47% over Jacks International’s last traded quoted share price of S$0.42 as at Oct 5, and 1.82 times the net assets/share of S$0.438 as at Jan 31.
“The proposed disposal is in line with the measures implemented by the board to divest non core business and loss making subsidiaries, which have a negative impact on the profitability of the Johan Group,” it said.
The original cost of investment of the sale shares in Jacks International was RM13.58 million, which was made on July 1, 1987. The proposed disposal will result in the Johan Group recognising a gain of about RM25.55 million.
Johan intends to use the sale consideration for working capital requirements of Johan group.