KUB disposing of entire stake in A&W for RM34m

PETALING JAYA: KUB Malaysia Bhd is disposing of its entire stake in fast food chain A&W (Malaysia) Sdn Bhd to Inter Mark Resources Sdn Bhd for RM34 million.
A sale and purchase agreement was inked on July 6 for the disposal, according to KUB's filing with the stock exchange.
The 34 million disposal sum consists of RM30 million for A&W’s entire equity interest and RM4 million for reimbursement of inter-company balances. As at May 31, 2018, A&W's net assets stood at RM11.1 million.
Inter Mark's principal shareholder Ang Choon Yan is the founder of a number of food and beverage businesses. It will assume ordinary business liabilities including a corporate guarantee previously provided by KUB in relation to A&W's banking facilities with Bank Pertanian Malaysia (Agrobank).
KUB said the proposed disposal will enable the group to realise its investment, which is not considered as strategic and synergistic to its other operations while at the same time allowing it to focus on the core businesses.
It is expected to record a one-off estimated net gain of about RM18.9 million, including the reimbursement of inter-company balances of RM4 million.
Based on KUB's total share capital of 556.46 million, its consolidated earnings per share and net assets per share is expected to increase by about 3.4 sen.
KUB's shares gained 3.23% to close at 32 sen with 537,500 shares done.