RED­tone to exit loss-mak­ing sub­sidiary

The Sun (Malaysia) - - SUNBIZ -

PE­TAL­ING JAYA: RED­tone In­ter­na­tional Bhd (RIB) pro­poses to sell its en­tire 92.31% stake in RED­tone Asia Inc (RED­tone Asia) to Mil­lion Vi­sion De­vel­op­ment In­ter­na­tional Ltd for RMB38.31 mil­lion (RM23.78 mil­lion).

In a fil­ing with Bursa Malaysia last Fri­day, RIB said it en­tered into a share sale agree­ment (SSA) with Mil­lion Vi­sion for the pro­posed dis­posal of its eq­uity in­ter­est com­pris­ing 260.6 2 mil­lion shares in RED­tone Asia.

“The pro­posed dis­posal will en­able RIB to stream­line and ra­tio­nalise its op­er­a­tions in­clud­ing di­vest­ment of non-in­come gen­er­at­ing sub­sidiaries.

The RED­tone Asia Group (RED­tone Asia group of com­pa­nies) has been in­cur­ring losses since 2014,” it said.

The RMB38.31 mil­lion is to be sat­is­fied via an as­sump­tion of debt by the pur­chaser of a sum of RMB21.31 mil­lion (RM13.23 mil­lion) be­ing amount ow­ing by the RIB Group to RED­tone Asia and/or its sub­sidiaries and a cash con­sid­er­a­tion of RMB17 mil­lion (RM10.55 mil­lion).

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