KUB plans to sell garment maker
By Sharen Kaur
sharen@nstp.com.my
Business Times – Malaysia, Malaysia
March 9 2014
KUB Malaysia Bhd plans to sell all its shares in KUB Tekstil Sdn Bhd, a garment maker, for RM15.7 million to reduce debt and finance future investments.
The loss-making company is undergoing a revamp by selling its non-core business and focus on a few main ones.
The group is planning to expand its energy and information and communications technology (ICT) divisions, which will drive its growth for this year.
“The disposal is in line with KUB’s strategic blueprint and it will enable the group to unlock the value of its non-core assets and free up resources for debt reduction and future investments,” KUB said in a statement.
KUB said its unit, KUB Ekuiti Sdn Bhd, has entered into a conditional agreement with privately-held My-Partners Solution Sdn Bhd to sell its entire 55.8 million shares in KUB Tekstil.
KUB said based on the book value of its investment in KUB Tekstil, the proposed disposal is expected to result in a loss of RM3.6 million for the financial year ending December 31 2014.
However, it will reduce gearing, a measure of borrowings, to 0.43 times from 0.45 times. In 2005, KUB Tekstil made a profit after tax of RM424,000. It has net assets of RM15.9 million.
