KUALA LUMPUR (March 17): Rohas Tecnic Bhd (KL:ROHAS) has entered into a binding term sheet with South Korea-based Korea Water Resources Corporation (K-water) to sell its 30%-owned Vietnamese unit Phu My Vinh Construction and Investment Corporation (PMV) for RM87.14 million.

In a bourse filing, Rohas stated that the term sheet will take effect from March 14 to April 30 or the signing date of the share sale agreement (SSA).

The company also noted that the pro forma effects of the disposal will be detailed in a subsequent announcement upon the SSA's signing. Furthermore, the term sheet does not require approval from the company's shareholders or any regulatory authority.

Rohas said the disposal will enable the group to unlock the value of its investment in PMV and generate immediate returns, strengthening its cash position and financial flexibility.

"It will allow the company to pursue growth initiatives and new investments that enhance long-term shareholder value," it added.

PMV is mainly involved in investment, construction and operation of water treatment plants and supply systems in Vietnam.

Rohas’ shares closed up half sen or 2.4% to 21.5 sen on Monday, giving it a market capitalisation of RM101.62 million. Year-to-date, the stock has fallen 23.2%.

K-water is wholly-owned by the South Korean government and responsible for water resource development and management in the country.

The principal activities of K-water involve the construction, operation and management of water facilities, waterworks, industrial complexes, special-purpose zones, sewage systems and renewable energy facilities. The issued share capital of K-water is KRW 11.52 trillion (approximately RM35.16 billion).