MMAG disposes of shares, warrants in MSCM for RM18.8m

KUALA LUMPUR: MMAG Holdings Bhd is divesting 95.21 million shares and 75.17 million warrants in business marketing platforms company MSCM Holdings Bhd for RM18.84 million to finance a land purchase in Penang and the setting up of its northern logistics hub.

The information and communications technology solutions provider yesterday entered into an agreement with Hong Seng Assembly Sdn Bhd to sell the shares, representing a 29.89 per cent stake, for RM18.09 million and another agreement with Landasan Simfoni Sdn Bhd to sell the warrants, or 47.19 per cent, for RM751,680.

“The proceeds from the proposed disposals will be partially utilised for the purchase of two parcels of freehold land together with all buildings at Valdor Industrial Area, Penang,“MMAG said in a filing with Bursa Malaysia.

The group said the remaining of the proceeds would be used as working capital to establish its northern logistics hub.

MMAG began investing in MSCM (formerly PanPages Bhd) in September 2018 by acquiring 26.37% equity interest, or 70 million shares, in the company for RM10.25 million.

It subsequently increased its stake further, with the group’s total cost of investment in MSCM being RM16.78 million.

It expects the proposed disposals to be completed this month.

On Oct 18, 2019, MMAG informed Bursa Malaysia on it plans to acquire 5.11 hectares land and properties for RM41 million from Dynaciate SPI Sdn Bhd, a unit of Dynaciate Group Bhd. – Bernama