KUALA LUMPUR (March 17): Manufacturer and converter of flexible packaging Daibochi Bhd is disposing of its entire 36.32% stake in property development and investment company Skyline Resources (M) Sdn Bhd for RM10 million, to focus on its core business.
In a filing to Bursa yesterday, Daibochi said the stake is being sold to Datuk Wira Wong Soon Lim and Jaymuda Resources Sdn Bhd (JRSB).
“The proposed disposal would enable the group to focus on its core competency of converting and further expansion of its business,” Daibochi said, adding proceeds from the disposal will be used as capital expenditure within the year.
The total original cost of investment in Skyline is approximately RM22.5 million, and the proposed disposal is expected to record a net loss of approximately RM1.1 million to Daibochi for the financial year ending July 31, 2020 (FY2020).
Daibochi shares closed 33 sen or 16.6% lower at RM1.66 yesterday, giving the company a market capitalisation of RM543.4 million.