KUALA LUMPUR (Jan 26): Joe Holding Bhd, formerly GPA Holdings Bhd, is selling its entire 70% stake in its subsidiary GP Products Sdn Bhd (GPP) to long-time shareholder Lim Siew Sooi for RM12.7 million.

The divestment also involves GPP’s wholly owned GPA Technologies Sdn Bhd and 60%-owned GP Firstpower Technologies Sdn Bhd.

Joe Holding said in a stock exchange filing on Friday that the disposal would allow it to reduce dependency on its traditional battery business, which is expected to be challenging in light of the expected greater demand for electric vehicle batteries in the market.

Proceeds raised from the disposal will be mainly used to settle RM9.7 million worth of advances provided by GPA Technologies to Joe Holding, and the remaining RM3 million is meant for working capital.

GPP was principally involved in marketing sealed lead acid batteries and other related downstream products, but it has ceased business operations since 2020 and remained dormant, while GPA Technologies is in the marketing of sealed lead acid batteries and motorcycle batteries.

Tan Ban Aik owns the remaining 30% stake in GPP.

GP Firstpower is involved in manufacturing, supplying and distributing valve regulated lead acid batteries and sealed lead acid batteries. Firstpower Tech Co Ltd owns the remaining 40% stake in GP Firstpower.

As at June 30, 2023, Joe Holding’s annual report shows that Lim owns a 2.45% stake in the group.

Joe Holding shareholders are rather fragmented, at least from the disclosures of its annual report, whereby its largest shareholder was Galaxy Coast Ventures Ltd, owning a 5.82% stake.

Shares of Joe Holding closed unchanged at 22 sen on Friday, giving it a market capitalisation of RM67.3 million.

The loss-making automotive battery maker was trading below 20 sen for most of last year, before it started a steep climb from Dec 18, 2023’s 10 sen apiece to 26.5 sen — the highest in the past 18-month period — on Jan 16.