Omesti disposes of subsidiary to CTOS for RM26.88m

15 Jul 2019 / 15:17 H.

PETALING JAYA: Omesti Bhd is selling its entire 100% stake in Formis E Solutions Sdn Bhd for RM26.88 million to CTOS Holdings Sdn Bhd.

Omesti said in a filing with the stock exchange that its wholly owned subsidiary Man Yau Holdings Bhd had on July 12 entered into a share purchase agreement (SPA) with CTOS for the disposal.

Omesti, as guarantor, has agreed to guarantee all obligations of Man Yau under the SPA.

Omesti is expected to realise a gain on disposal of RM24.62 million from the disposal, which will be channelled for working capital purposes.

It said the disposal was carried out after reviewing its investment portfolio and overall market conditions.

Omesti’s earnings per share is expected to increase by 5.71 sen, while the net assets per share to increase by 6.24 sen from the disposal.

Gearing ratio, on the other hand, is expected to decrease from 54.28% to 46.77%.

Formis is engaged in the development of application software, system integration services and the provision of hardware and software maintenance services but has been dormant since 2014.

Formis holds 16% equity interest in RAMCI, which is involved in provision of credit reporting business, credit bureau and information services.

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