Connectcountry sells stake in Rapid Power for RM1.4mil
PETALING JAYA: Connectcountry Holdings Bhd has disposed of its 31% stake in Shenzhen Rapid Power Co Ltd (Rapid Power) for a total disposal consideration of 2.33 million yuan (RM1.4mil).
In its filings with Bursa Malaysia, Connectcountry, an integrated provider of interconnect solutions with highly automated manufacturing facilities in China, said the company is expected to make a gain of RM891,900 from the exercise.
It added that the sales proceeds would be utilised for working capital purposes.
Connectcountry yesterday announced that its wholly owned subsidiary, Rapid Conn (Shenzhen) Co Ltd (RCC), had disposed of a 31% equity interest in Rapid Power.
The company said the transfer of shares was approved by the State Administration of Industry and Commerce of the People’s Republic of China on Tuesday and that the notification on the approval was received by RCC the next day.
Explaining the rationale of the exercise, Connectcountry said RCC was undergoing an equity restructuring of its subsidiaries in connection to the changing business circumstances in China.
“Consequential to the partial disposal, Rapid Power will cease to be an indirect subsidiary of
Connectcountry and in turn become an associate company of Connectcountry,” the company said.
Upon completion of the partial disposal, RCC will hold a 49% equity interest in Rapid Power, whose principal activity is the manufacture and trading of cables, connectors and related products.