Con­nect­coun­try sells stake in Rapid Power for RM1.4mil

The Star Malaysia - StarBiz - - News -

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.

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