The Nomad Group to sell entire 30% stake in Malacca Securities

PETALING JAYA (Jan 17, 2014): The Nomad Group Bhd is proposing to dispose of its entire 30% shareholding in the issued and paid-up capital in Malacca Securities Sdn Bhd for RM18.48 million or RM1.80 a share.
This consists of 10.269 million ordinary share at a nominal value of RM1 each, the company said in a filing to Bursa Malaysia.
The Nomad Group has entered into a share sale agreement with Paradox Corp Sdn Bhd, Lim Peng Cheong, Yong Sook Lan, Lim Chia Wei, Lim Jian You and Lim Jian Yen (the purchasers) for the sale of its stake in the company.
At present, the authorised share capital of Malacca Securities is RM50 million, comprising 50 million ordinary shares of RM1 each, of which 34.23 million shares equivalent to RM34.23 million are issued and paid up.
Malacca Securities' principal activity is acting as a stock and share broker. As at Jan 31, 2013, Malacca Securities posted a loss of RM2.83 million for the year and its net assets amounted to RM75.619 million.
Paradox, which is currently a substantial shareholder of Malacca Securities, is an investment holding and management services company. Peng Cheong is the managing director of Malacca Securities. Yong is the wife of Peng Cheong and Chia Wei, Jian You and Jian Yen are their children.
The Nomad Group said the sale will be fully satisfied in cash and it intends to use the proceeds from the proposed disposal for working capital and to fund new investments that are yet to be identified.
The Nomad Group acquired its stake in Malacca Securities March 31, 2001 for RM22.02 million. As at Sept 30, 2013, the carrying amount is RM17.87 million. The company is expected to record a loss of about RM1.223 million arising from the proposed disposal.