KUALA LUMPUR (April 28): Rohas Tecnic Bhd (KL:ROHAS) has firmed up the disposal of its 30% stake in Vietnam-based Phu My Vinh Construction and Investment Corp (PMV) for 500.82 billion dong (RM84.64 million) in cash.
Following a binding term sheet for exclusive talks entered into previously, Rohas Tecnic on Monday signed the sale agreement with South Korea's Korea Water Resources Corp (K-Water), according to the utility construction and tower fabrication company’s bourse filing on Monday.
Rohas Tecnic said the disposal is to unlock the company’s investment in PMV and realise immediate returns, strengthening its cash position and financial flexibility.
Rohas Tecnic expects to book a net pro forma gain from the disposal of RM22.15 million — RM84.64 million in disposal consideration against RM53.89 million in carrying value of net assets disposed of, as well as RM8.6 million in capital gains tax and estimated expenses.
Of the sale’s proceeds, RM33.31 million will be used for repayment of borrowings, RM29.63 million for working capital requirements, RM13.1 million to pay suppliers and the remainder for the capital gains tax and estimated expenses.
Rohas Tecnic said the disposal consideration took into consideration PMV’s audited net assets at end-2024 of 463.96 billion dong (RM78.87 million), its total cost of investment of RM44.48 million and the estimated net pro forma gain from the disposal.
PMV is mainly involved in the investment, construction and operation of water treatment plants and supply systems in Vietnam.
Meanwhile, K-Water is wholly owned by the South Korean government and is responsible for water resource development and management in the country.
Looking at PMV’s financial performance, the company booked an unaudited net profit of 46.63 billion dong (RM7.82 million) on a revenue of 209.5 billion dong (RM35.15 million) for the financial year ended Dec 31, 2024 (FY2024).
It posted audited net profits of 27.1 billion dong (RM4.54 million) in FY2023, 46.66 billion dong (RM7.82 million) in FY2022 and 30.81 billion dong (RM5.17 million) in FY2021.
The disposal is not subject to shareholders’ approval but is subject to approval from Vietnamese authorities. The sale is expected to be completed in the third quarter of 2025, according to Rohas Tecnic.
Shares in Rohas Tecnic were last traded at 22.5 sen on April 25, valuing the company at RM106.35 million.