PETALING JAYA: ARB Bhd has entered into a conditional share sale agreement with AY Brothers Sdn Bhd for the proposed disposal of its remaining 51% interest in Aturmaju (Sabah) Holding Sdn Bhd for RM5.6 million, as part of its plan to transform ARB’s business position from the timber sector to the information technology sector.
The proceeds from the disposal are expected to strengthen the group’s cashflow position.
In a statement, it said Aturmaju’s operations have been incurring losses over the past few years, which resulted in the cessation of its operations since the second quarter of 2018. ARB had disposed of a 49% stake in Aturmaju in August 2019, also to AY Brothers.
ARB executive director Datuk Seri Liew Kok Leong said the divestment will allow it to channel its strength and capabilities to activities that are aligned with its IT business.
“We recognise the importance of IT in the challenging society landscape as digital technology is constantly changing the needs and expectations of consumers. Hence, we believe we are on the right track as far as the developments of the ERP and IoT segments are concerned,” he said.
Earlier this month, ARB, via its indirect subsidiary, Databook Pte Ltd, entered into a business partnership agreement and an outsourcing partnership agreement with Asterisk Computer (Far East) Pte Ltd to support the accelerated deployment of the enterprise application software solutions in Malaysia and Singapore.
Liew said ARB will evaluate potential business partnerships and/or viable joint ventures with strategic partners, in Malaysia and Singapore should the opportunity arise.