Salcon disposes unit for RM58.93m

PETALING JAYA: Salcon Bhd together with its 60% owned unit, Salcon Water (Asia) Limited (SWA) plans to dispose of their entire stake in Salcon Linyi (HK) Limited (SLHK) for RM58.93 million.
In a share sale and purchase agreement entered yesterday, SalCon said it and SWA will dispose of 40.3 million HK$1.00 shares, representing 100% of the total issued and paid-up share capital of SLHK, to Orient Harmony Holdings Bhd.
In a stock exchange filing yesterday, Salcon said the proposed disposal is an opportunity to the company to continue to realise and unlock the value of its investments in SLHK and allow the group to strengthen its financial position.
"With the proceeds from the proposed disposal, Salcon will be able to re-mobilise its capital and resource for expansion of its other core business including property development, fiber optic and/or investment in new income stream," it said.
The group is expected to realise a net gain of about RM31.96 million from the disposal based on the latest audited financial statements for the financial year ended Dec 31, 2014.