PRG Holdings to exit confinement services business after seven years

• PRG said its wholly owned subsidiary PRG Healthcare Sdn Bhd has entered into a shares sale agreement with Chou Chia Ching, who is the largest shareholder of EPC, for the disposal of 807,721 shares or a 26.21% stake in EPC.

KUALA LUMPUR (May 29): Manufacturing, property development and construction outfit PRG Holdings Bhd (KL:PRG) is exiting the confinement services business by disposing of its entire 26.21% equity interest in Esther Postpartum Care Sdn Bhd (EPC) for RM1, in line with the group's strategic move to focus on its core business operations.

In a filing with Bursa Malaysia on Thursday, PRG said its wholly owned subsidiary PRG Healthcare Sdn Bhd has entered into a shares sale agreement with Chou Chia Ching, who is the largest shareholder of EPC, for the disposal of 807,721 shares or a 26.21% stake in EPC.

Chou currently holds a 51% stake in EPC, while YL Global Ventures Sdn Bhd owns the remaining 22.79%. Upon completion of the proposed disposal, Chou’s stake will increase to 77.21%.

PRG said since the acquisition in 2018, EPC has not delivered any profits, and PRG’s 26.21% equity interest, classified solely as an investment, does not confer any control over EPC’s operations.

"Notwithstanding the lack of operational control, PRG remains exposed to potential risks associated with EPC’s business," PRG said, adding that it is of the view that the proposed disposal is in the best interest of the group to mitigate further risk exposure and reallocate resources to areas with greater strategic value and growth potential.

This investment has been fully written off in the group’s accounts.

The proposed disposal is not subject to the approval of PRG’s shareholders and will not have any material effect on the group's earnings for the financial year ending Dec 31, 2025.

PRG shares closed unchanged at eight sen on Thursday, giving the group a market capitalisation of RM36.9 million. The stock has fallen 27.27% so far this year.

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