KUALA LUMPUR (Aug 21): Digital marketing and advertising services firm JcbNext Bhd (KL:JCBNEXT) has continued to trim its stake in Taiwan-listed company 104 Corp, as it seeks to diversify its investment portfolio and reduce concentration risk.
JcbNext disposed of a total of 549,029 shares in 104 Corp between May 16 and Aug 21 for NT$128.04 million, or about RM18.37 million, the company said in an exchange filing on Wednesday. Following the sale in the open market, its holding in 104 Corp has been reduced to 15.3% from 16.9%.
"Based on the disposal consideration, the expected net gain arising from the disposal is RM10.53 million," the company said. The original cost of the investment was RM5.42 million for the 1.7% stake, which was acquired between Oct 1, 2007 and Dec 6, 2010.
JcbNext started trimming its stake in 104 Corp in June 2022, when it had 22% stake in the Taiwanese company mainly involved in information technology, general advertising services, employment services and human resources consultancy.
Since then, the company has grossed about RM72.23 million from the series of share sales in 104 Corp.
Proceeds from the disposal would be utilised for “investing in other opportunities, such as listed equity securities or other private investments that meet the company’s investment objectives", JcbNext noted.
The company expects to fully utilise the proceeds within two years from the completion of the disposal, depending on market conditions, JcbNext added.
Shares in JcbNext closed unchanged at RM1.64 on Wednesday, valuing the group at RM216.53 million.