E&O dispose interest in Fututech for RM8.7m

KUALA LUMPUR: Eastern & Oriental Bhd's (E&O) two wholly-owned subsidiaries — E&O Property Development Bhd and Samudra Pelangi Sdn Bhd — have disposed of their entire securities interest in Fututech Bhd for a total cash consideration of RM8,780,103.93.

In a filling to Bursa Malaysia on Thursday, Mar 24, E&O said that that it had on the same day entered into an agreement with Egovision Sdn Bhd in relation to the disposal of their entire securities interest in Fututech.

It said that E&O Property Development disposed of 10,375,783 ordinary shares of RM1.00 each — representing 17.67% equity interest in Fututech — as well as 4,811,427 warrants 2007/2017 at nominal value of RM1.00 each — representing 20.48% equity interest — for a total of RM5,187,891.50 and RM433,028.43 respectively.

Meanwhile, Samudra Pelangi disposes of 5,894,000 ordinary shares of RM1.00 each — representing 10.04% equity interest — and 2,357,600 warrants 2007/2017 at nominal value of RM1.00 each — representing 10.04% warrants in issue in Fututech — for a cash consideration of RM2,947,000 and RM212,184 respectively.

E&O said that the total cash consideration of RM8,780,103.93 was arrived at on a willing-buyer-willing-seller basis after taking into consideration the net assets of Fututech as at Dec 31, 2010 and the 3-month volume weighted average market prices up to March 23, 2011 for Fututech shares and Fututech warrants of RM0.43 per share and RM0.11 respectively.

The company said that the proposed disposal will not have any effect on the issued and paid-up share capital of E&O and on its net assets per share as well as on its earning for the financial year ending March 31, 2011.

The board of directors at E&O is on the opinion that the proposed disposal is in the best interest of the company and that the proceeds from the disposal will enable E&O Group to re-deploy its resources into its higher yielding core businesses.