Europlus sells Talam shares

KUALA LUMPUR: Kumpulan Europlus Bhd disposed of 20 million shares of Talam Corporation Bhd for RM1.8 million.

In a filing to Bursa Malaysia on Monday, Dec 6, the company said the 20 million shares of 20 sen each, or 0.63% of the total voting share capital of Talam Corp, were sold on Dec 3 at a price of 9 sen per share on a willing-buyer-willing-seller basis.

The shares arose from recent conversion of Redeemable Convertible Secured Loan Stock-D (RCSLS-D) and Redeemable Convertible Preference shares (RCPS) which were acquired on Sept 9 and Nov 11 respectively, pursuant to approval obtained from shareholders at the EGM held on Nov 4 last year.

"The disposal gave rise to a net profit of RM0.46 million or 0.10 sen per ordinary share. The net assets of Kumpulan Europlus also increased by 0.10 sen to RM0.19 per ordinary share. The disposal has reduced the gearing ratio of the company from 2.95 to 2.93, based on audited financial statement as at Jan 31, 2010," it said.

The book cost of the shares is RM1.34 million.

The sale proceeds generated from the disposal will be used to pay creditors and reduce bank borrowings, it added.