REDtone to exit loss-making subsidiary

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).