Integrated Logistics unit to sell stakes in two firms for RM519 m
STARBIZWEEK, SATURDAY, 28 JUNE 2013
Petaling Jaya: Integrated Logistics Bhd announced that its indirect 70%-owned subsidiary, Integrated Logistics (HK) Ltd (IL HK) has agreed to dispose of its entire equity interest in ISH Logistics (Shenzhen II) Ltd (IL Shenzhen) and Integrated Logistics Henan (HK) Ltd (IL Henan) to Winfair International Holdings Ltd for 998 million yuan (RM519.3 mil).
Integrated Logistics told Bursa Malaysia that it expected a pro forma gain of RM178 mil from the disposals. It plans to use the proceeds for strategic acquisitions within the same industry.
Winfair International is a subsidiary of C.J.H Investment Co Ltd, which has guaranteed the performance of the purchaser's obligations under the agreement.
IL HK proposed to dispose of 40 million shares in IL Shenzhen for a cash consideration of 843 million yuan, and one share in IL Henan for 155 million yuan cash.
The proposed disposals present an opportunity for the company to realise the value of its investments in IL Shenzhen and IL Henan.
"Upon the completion of the proposed disposals, Integrated Logistics may become a cash company." it said.
It expects the proposals to be completed in the second half of 2013.