KUALA LUMPUR: ECM Libra Financial Group Bhd (ECMLFG) has entered into a conditional share purchase agreement with Kenanga Investors Bhd to dispose of its 100 per cent stake in Libra Invest Bhd for RM50.07 million.
Libra Invest is a fund management company licensed under the Capital Markets and Services Act 2007, and is principally engaged in the management of unit trust funds and the provision of fund management services.
ECMLFG said the bulk of the provisional disposal consideration arising from the proposed disposal of RM50.07 million was intended to be utilised for reinvestment into the hospitality business amounting to RM49.63 million, with the remaining RM440,000 to be used for estimated expenses for the proposed disposal.
“The proposed disposal provides an avenue for ECMLFG to unlock and realise the value of its investment in Libra Invest at an attractive premium,” said ECMLFG in a filing to Bursa Malaysia today.
ECMLFG said Kenanga Investors would undertake to expeditiously do all things necessary, including changing the name of Libra Invest, after the completion date.
Subject to all required approvals being obtained, the proposed disposal is expected to be completed in the third quarter of 2019, added ECMLFG.
– BERNAMA