Thursday 20 Jun 2024
main news image

KUALA LUMPUR (Nov 11): Muar Ban Lee Group Bhd (MBL) is disposing of its entire 51% stake in its Indonesian unit PT Serdang Jaya Perdana (SJP) for 36 billion rupiah (RM11 million).

MBL is expected to incur a net loss of RM524,800 from the disposal.

In a filing with Bursa Malaysia on Friday (Nov 11), the group said its wholly owned subsidiary Muar Ban Lee Engineering Sdn Bhd had entered into a sale and purchase deed on Nov 10 with Sian and Lucialim for the disposal.

SJP is engaged in palm kernel crushing plant operations where crude palm kernel oil is extracted from palm kernel.

The rationale of the disposal includes MBL not being involved in the management of SJP, as well as low returns and profits over the past few years with uncertainty in the industry's outlook.

MBL also wants to take the opportunity to improve its cash flow as proceeds from the disposal will be used for working capital.  

The deal is not expected to result in MBL becoming a cash company or a Practice Note 17 company.

Shares of MBL closed half a sen higher at 38 sen on Friday, giving it a market capitalisation of RM94.48 million.

      Text Size