MULPHA INTERNATIONAL BHD's units are disposing of their entire combined stake in Pacific Orchid Investments Ltd, whose group core business is paint manufacturing and trading in petrochemicals, to Hong Kong-listed COL Capital Ltd for HK$281.25 million (about RM129.37 million).
Mulpha said on Sept 11 the disposal was in line with the group's strategy to dispose of its non core assets and focus on its core businesses in property and property related sectors.
"The disposal will result in a one-off group gain of RM16.81 million for the year ending Dec 31, 2009. Based on the current issued share capital of Mulpha International, the gain is equivalent to earnings per share of 1.43 sen," it said.
Its indirect units Mulpha Strategic Ltd (MSL) and Jumbo Hill Group Ltd had on Sept 4 signed a sale and purchase agreement to dispose of the entire stake in Pacific Orchid to True Focus Ltd, a unit of COL. MSL and JHGL own 68% and 32% respectively in Pacific Orchid.
Pacific Orchid, in turn, owns 68.7% of Greenfield Chemical Holdings Ltd, whose shares are listed on the Hong Kong Stock Exchange, and is involved in the paint and petrochemicals business.
Greenfield posted group net profit of HK$14.90 million (RM6.9 million) based on its latest audited accounts for the year ended Dec 31, 2008. Its net assets were HK$391.16 million (RM180 million) as at Dec 31, 2008.
Mulpha said of the RM129.37 million, it would use RM122 million to repay its borrowings while the remainder would be for working capital.
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