KUALA LUMPUR (Feb 9): Ann Joo Resources Bhd (KL:ANNJOO) is disposing of the group's 51% indirect stake in waste management firm Bumi Segar Indah Sdn Bhd (BSI) for RM15.14 million cash, as part of efforts to streamline operations and refocus on core businesses.

In a bourse filing, the steel manufacturer said its wholly owned unit Ann Joo Green Energy Sdn Bhd (AJGE) has entered into a deal to sell the stake to the holders of the remaining 49% equity interest in BSI, Ng Kwok Siong and DSI Northern Source Sdn Bhd.

BSI is principally engaged in supplying and assembling waste management equipment, as well as providing waste management and public cleansing services.

Ann Joo said AJGE has historically extended shareholder advances to BSI amounting to a net balance of RM74.12 million, fully utilised for capital expenditure and operational needs.

This balance has since been capitalised into redeemable preference shares, which AJGE may redeem in three tranches on April 30, June 30 and Aug 31.

Late payments will accrue interest of 10% per annum, with automatic extensions of up to six months per tranche and a possible further six-month extension subject to interest payments.

Ann Joo said the disposal is expected to result in a gain, which will be determined after factoring in BSI’s assets and liabilities upon completion.

Shares in Ann Joo closed unchanged at 55 sen on Monday, valuing the group at RM395.41 million. Over the past year, the stock has fallen 33.3%.