Careplus sells off property development unit Centro Heights

KUALA LUMPUR (April 17): Careplus Group Bhd (KL:CAREPLS) said it is disposing of its entire stake in its property development unit Centro Heights Sdn Bhd to streamline its asset portfolio and unlock asset value.

In a bourse filing on Thursday, the glove manufacturer said it entered into a share acquisition agreement with seven individual buyers to sell its entire 3.8 million shares for a cash consideration of RM3.8 million, which implies an indicative price of RM1 per share.

The purchasers named were Khoo Boon Keong, Au Phei Sze, Gan Jye Din, Satheeshkumar Palaniappan, Yap See Lon, Loo Chian, and Tan Sian Loong.

The transaction is a related-party deal as Khoo Boon Keong is the cousin of Careplus group chief executive officer and major shareholder Lim Kwee Shyan, while Au Phei Sze is Khoo’s spouse.

Loo Chian is the father of Loo Teck Looi, a non-independent executive director and shareholder of Careplus.

Centro Heights is primarily involved in hostel management and consultancy services as well as building repair and maintenance works.

Careplus originally acquired a 90% stake in Centro Heights in July 2020 for RM3.42 million, before completing the remaining 10% acquisition in July 2023 for RM380,000, bringing total investment cost to RM3.8 million.

The group said the proceeds from the sale will be used for working capital and general operating requirements.

Following completion, Careplus will continue to occupy the premises under a rental arrangement structured on a per-headcount basis. The group said the arrangement will allow it to continue operations at the premises without disruption while monetising its investment.

At the end of Thursday’s trading day, Careplus closed flat at 7.5 sen. It has a market capitalisation of RM58 million.

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