KUALA LUMPUR, Jan 10 (Bernama) -- Kwantas Corporation Bhd is disposing its entire 70 per cent shareholding in Green Ace Resources Sdn Bhd to Golden Agri Resources Sdn Bhd for RM32.41 million cash.
Upon completion, Green Ace would cease to be a subsidiary of Kwantas.
In a filing to Bursa Malaysia Monday, it said the disposal was part of the company's streamlining exercise and would assist the group in reducing its bank borrowings.
The sales proceed from the disposal will be utilised for working capital after settling all incidental costs incurred in connection with the exercise, it added.
The disposal is expected to realise a net gain on disposal of approximately RM32 million, and also improve its gearing ratio by three per cent for the financial year ended June 30, 2010.
The exercise is expected to be completed in the second quarter of this year. -- BERNAMA
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