KUALA LUMPUR, Sept 8 (Bernama) -- Bursa Malaysia closed almost flat on Tuesday as buying interest rotated away from index heavyweights towards smaller-cap construction stocks, with sentiment affected by geopolitical uncertainty, said an analyst. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 0.39 of a point to 1,714.40 from Monday’s close of 1,714.79. The benchmark index opened 1.65 points lower at 1,713.14 and moved between 1,710.44 and 1,714.50 throughout the trading session. The broader market was almost evenly balanced, with decliners leading gainers 548 to 546, while 598 counters were unchanged, 1,107 were untraded and 25 were suspended. Turnover expanded to 4.13 billion units valued at RM3.14 billion from 3.60 billion units valued at RM2.45 billion on Monday.
UEM Sunrise Bhd's (KL) attempt to divest its 80.4% stake in South Africa’s Roc-Union Proprietary Ltd has fallen through for the second time. The buyer, Azishe Properties Proprietary Ltd, failed to meet its payment obligations within the stipulated time frame, according to a filing with Bursa Malaysia.
Key Points:
Failed Divestment:
- This marks the second unsuccessful attempt by UEM Sunrise to sell its stake in Roc-Union.
- The initial sale agreement, worth 18.4 million rand (RM29.5 million), was made in August 2023.
Background:
- UEM Sunrise South Africa, a wholly-owned subsidiary of UEM Sunrise Overseas Corp Sdn Bhd (UEMSOC), had given shareholder advances to Roc-Union.
- UEM Sunrise’s indirect wholly-owned subsidiary, UEM Sunrise South Africa, holds the 80.4% stake in Roc-Union.
Sale Agreement Terms:
- Azishe was required to pay 10% of the purchase consideration, 11.8 million rand (RM2.9 million), as a non-refundable deposit within five business days from the sale agreement date (Aug 28, 2023).
- The remaining 90%, 106.6 million rand (RM26.6 million), was to be paid via bank guarantee within 60 business days from the signing date.
- A mutual agreement was made to extend the deadline for the total payment to Dec 31, 2024.
Current Status:
- UEM Sunrise announced the cancellation of the sale agreements due to Azishe's failure to make the required payments, constituting a breach of the agreements.
- The proposed divestment was part of UEM Sunrise's strategic turnaround plan to realign operations geographically and focus on areas with greater potential.
Market Impact:
- Shares in UEM Sunrise fell three sen to RM1.18 on Wednesday, valuing the company at RM5.97 billion.
The failed divestment highlights ongoing challenges in UEM Sunrise’s efforts to streamline its operations and focus on more promising markets.
Comments
Post a Comment