DRB-Hicom sells stake in subsidiary for RM1.54m

PETALING JAYA: DRB-Hicom Bhd’s wholly-owned subsidiary Hicom Holdings Bhd has sold its entire 70% stake in Scott & English Electronics Holdings Sdn Bhd (SEEH) for RM1.54 million cash.

In a filing with Bursa Malaysia yesterday, the group said that it has no future plans to activate SEEH, which is currently dormant, hence the divestment.

Hicom Holdings had entered into a share sale agreement with Ng Kong Chin for the sale of 1.4 million SEEH shares for RM1.10 per share.

The divestment was completed yesterday and SEEH has ceased to be a subsidiary in the DRB-Hicom Group.

The RM1.54 million cash consideration takes into account the net assets of RM2.22 million based on the unaudited financial statements of SEEH as at Sept 30, 2016 and Hicom Holdings having fully recovered its entire cost of investment in SEEH via receipts of dividends from SEEH.

The deal follows a number of disposals and acquisitions the group have made in a move to realign itself.

Last month, the group announced an internal reorganisation within its subsidiary companies, which included the acquisition of Oriental Summit Industries Sdn Bhd and the sale of DRB-Hicom Leasing Sdn Bhd.