KUALA LUMPUR: JAG Capital Bhd’s (JAGCap) unit, KUB Agro Holdings Sdn Bhd (KUBAH), has entered into a share purchase agreement with Sinong Enterprise Sdn Bhd (SESB) to dispose off a 30-per cent stake in Sinong Sepadu Sdn Bhd (SSSB) for RM44.3 million in cash.
In a filing with Bursa Malaysia, the investment holding company said the disposal involves 1.95 million ordinary shares in SSSB to SESB.
JAGCap’s original investment in SSSB, via KUBAH, for the 1.95 million shares was RM45.0 million, based on the March 20, 2024 acquisition date.
“As the group holds 30 per cent equity interest, it does not have a controlling stake in SSSB.
“The parties have differing views and priorities on key matters relating to SSSB’s affairs, operations and business. Accordingly, pursuant to the right of first refusal, KUBAH offered its shares to SESB, which elected to acquire them,” it said.
JAGCap added that both parties agreed the arrangement is in the best interests of stakeholders and facilitates an orderly exit for KUBAH from SSSB.
The group said the proposed disposal offers a timely opportunity to realise a pro forma gain of RM17.424 million and is expected to enhance its net assets and earnings.
It said the proceeds would strengthen its position to deliver more sustainable returns to shareholders.
“The proposed disposal is expected to raise gross proceeds of RM44.3 million, to be used for general working capital within 12 months of completion,” it said.
The remaining proceeds will be placed in interest-bearing deposits with licensed financial institutions and/or short-term money market instruments as the group evaluates investment opportunities to rebuild a diversified portfolio.
Barring unforeseen circumstances and subject to required approvals, the disposal is expected to be completed by the third quarter of 2026. – BERNAMA
