KUALA LUMPUR (July 12) : Muda Holdings Bhd’ indirect 70%- owned subsidiary Intrapac (Singapore) Pte Ltd has disposed of its 16.88% stake in KL Resources Pte Ltd for S$3.997 million (RM12.34 million) cash to generate funds for working capital.

Muda said in a bourse filing that Intrapac Singapore has disposed of 84,412 ordinary shares in KL Resources.

Upon completion of the disposal, Intrapac Singapore will have a balance of 84,413 ordinary shares representing 16.88% of the issued share capital of KL Resources.

Muda noted that 80% of the consideration amounting to S$3,198,158.00 will be paid on 12 July 2021 and the balance of S$799,540.00 will be paid by Opulent Capital to Intrapac Singapore by 31 October 2021.

KL Resources is principally engaged in the waste paper recovery and processing business in Singapore.

Muda said the disposal provides an opportunity for the group to partially realize its investment at an attractive return and generate funds for working capital.

The total cash proceeds of RM12.34 million will be retained in the Muda as working capital, it added.

Upon completion of the disposal, the group will realize a gain on disposal of approximately RM3.91 million, which represents an increase in group’s earnings per share of approximately 1.28 sen.

Muda closed 4 sen or 1.54% lower at RM2.56 today, valuing the group at RM780.93 million.