Asia Brands proposes to sell B.U.M. Marketing (M)

PETALING JAYA: Asia Brands Bhd has entered into a non-binding term sheet with Trackland Sdn Bhd for the proposed disposal of its entire 100% stake in B.U.M. Marketing (Malaysia) Sdn Bhd (BUMM) for RM7.2 million.
The transaction is subject to the satisfaction of conditions, including a satisfactory due diligence to be conducted by Trackland on BUMM, as well as the finalisation of a binding definitive agreement between the parties.
BUMM is principally involved in the business of trading and retailing in adults' and children's wear, care and related products through heavy traffic outlets, distributors as well as retailing boutique outlets.
The purchase consideration consists of RM5.0 million to be paid on Oct 1, 2016, and RM2.2 million to be paid in six monthly instalments.
"The proposed disposal is to divest non-productive business segment and to reduce further losses to the group," Asia Brands said in a stock exchange filing.
A detailed announcement on the proposed disposal will be made upon the execution of a definitive agreement between the parties, Asia Brands said.