5 days ago
- Business
- Malaysian Reserve
PRG sells remaining 26.21% stake in Esther Postpartum Care for RM1
PRG Holdings Bhd has entered into a share sale agreement to dispose of its remaining 26.21% equity interest in Esther Postpartum Care Sdn Bhd (EPC) for a nominal cash consideration of RM1.
In a filing with Bursa Malaysia today, PRG said the symbolic price was determined on a willing-buyer, willing-seller basis, given EPC's continued losses and negative net assets.
'The consideration for the sale shares at RM1.00 will be paid in cash, and was determined on willing buyer-willing seller basis, based on EPC's current financial position,' the company said.
'The risk and cost of holding the investment outweigh any potential future benefit. RM1.00 simply represents a symbolic transfer of ownership where the purchaser accepts future risks of the company.'
According to PRG, EPC recorded revenue of RM4.44 million and a net loss of RM701,313 for the financial year ended Dec 31, 2024 (FY2024). Its shareholders' deficit stood at RM3.93 million.
The proposed disposal is also justified by the fact that the purchaser is already the largest shareholder of EPC and will assume full financial responsibility, PRG added.
The group originally acquired the 26.21% stake in EPC in October 2018 for RM3.75 million, including RM1.02 million worth of shares acquired via a call option.
However, the entire investment has been fully impaired in prior years, resulting in a nominal gain of RM1 from the disposal.
PRG clarified that no liabilities, contingent liabilities or guarantees will be assumed by the group in connection with the disposal. — TMR
