5 days ago
- Business
- Malaysian Reserve
FoundPac sells loss-making SDKM stake for RM250,000 in strategic refocus
FOUNDPAC Group Bhd has disposed of its entire 70% equity stake and all redeemable convertible preference shares in SDKM Technologies Sdn Bhd for RM250,000 in cash to SDKM director and shareholder Kameda Shin, as part of a strategic exit from the loss-making unit.
The disposal, completed today, through wholly owned subsidiary FoundPac Capital Sdn Bhd, includes 6.3 million ordinary shares and 5 million preference shares in SDKM.
The company said the deal is part of its broader restructuring strategy aimed at strengthening its financial position and focusing on its profitable precision engineering business.
SDKM, which manufactures accessory cables and connectors, has posted cumulative losses exceeding RM16.2 million since FY2022, with negative shareholders' funds of RM0.6 million as of May 2025.
In conjunction with the sale, FoundPac also wrote off RM7 million in inter-company loans to SDKM.
'The proposed disposal is necessary and represents a strategic step towards strengthening FoundPac Group's financial position and footing,' the company said in its filing.
The transaction will result in an estimated RM8.31 million loss for the group in FY2025, but FoundPac said the long-term benefits, particularly reduced financial strain and sharper operational focus, outweigh the short-term hit.
The RM250,000 proceeds will be used for working capital.
Upon completion, SDKM will cease to be a subsidiary of FoundPac. — TMR
