KUALA LUMPUR (Sept 20): Harvest Miracle Capital Bhd, formerly known as Vortex Consolidated Bhd, has proposed to dispose of a 40% stake in its wholly-owned subsidiary Viewnet Computer System Sdn Bhd (VCS) in a related party transaction.
The group said it is selling the stake for RM14 million to Basetex Sdn Bhd, whose sole director and shareholder Pang Kim Moon is also a director of VCS.
“The proposed disposal is viewed as a positive move for the group, driven by the anticipation of positive outcomes," said Harvest Miracle in a bourse filing on Wednesday.
“With the senior management actively participating with equity stakes, there will be a heightened level of involvement in decision-making processes, paving the way for the formulation of robust future business strategies and directions.
“Furthermore, the proposed disposal offers an opportune moment for the group to promptly unlock and realise the latent value embedded within VCS' investment and assets,” the group said.
Harvest Miracle expects to gain RM10.93 million from the stake disposal, which it plans to use to fund its working capital, and partially to repay its latest acquisition of 187 serviced apartment units in Genting Highlands.
VCS is principally engaged in trading of information technology and information communications technology-related products, including hardware, software and accessories.
For the financial year ended March 31, 2023, VCS reported a net loss of RM1.58 million. It had net assets of RM9.13 million as at the end of the year.
Shares in Harvest Miracle ended unchanged at 10 sen, giving the group a market capitalisation of RM122.46 million.