PPB disposing of stake in non-profitable Myanmar unit

PETALING JAYA:PPB Group Bhd via its 79.9%-owned indirect subsidiary Tego Sdn Bhd, will be disposing its entire equity interest in its Myanmar based indirect subsidiary Tefel Packaging Industries Co. Ltd to Messrs Natthi Cholsaipant and Tanapat Cholsaipant for a cash consideration of US$2.4 million (RM10.06 million).
Tego had on Sept 20 entered into a shares transfer agreement with the purchaser in relation to the disposal.
The consideration for the disposal was based on Tefal's net book value of fixed assets and goodwill as at December 31, 2016 of US$1.8 million and US$0.6 million respectively.
PPB said in a Bursa Malaysia filing that the rationale behind the disposal was the intention to divest the unprofitable non-core business.
Tefel, which manufactures and sells polypropylene bags, was incorporated in Myanmar in August 2000.
PPB shares gained 0.72% to close at RM16.80 on Wednesday with some 296,500 shares changing hands.