Wong Engineering Corp Bhd (WEC) is disposing of a 10% equity interest in its associate company, Broadway Lifestyle Sdn Bhd (BLSB), for a total cash consideration of RM6.27 million as part of its ongoing efforts to unlock value from its investment portfolio and strengthen focus on its core precision engineering operations.
In a filing with Bursa Malaysia, WEC announced that it had entered into a share sale agreement with Econ Property Management Sdn Bhd on July 21 for the disposal of 250,000 ordinary shares and 5.15 million redeemable non-cumulative preference shares in BLSB.
Following the completion of the transaction, WEC’s equity interest in BLSB will be reduced from 35% to 25%, while BLSB will continue to remain an associate company of the group.
WEC said the disposal consideration was determined on a willing buyer-willing seller basis, taking into consideration several factors, including the group’s original investment cost as well as BLSB’s estimated net assets and liabilities.
Under the terms of the agreement, Econ Property Management will make an initial payment of RM5 million upon execution of the share sale agreement, with the remaining balance of RM1.27 million to be settled within three months from the date of the agreement.
The precision engineering group said the divestment aligns with its strategy to optimise its investment holdings, enhance capital efficiency and provide additional financial flexibility to support its ongoing business operations and future growth initiatives.
