KUALA LUMPUR, Dec 13 — Vertice Bhd (VERTICE, 7240) has proposed to sell a 60 per cent stake in its wholly-owned subsidiary, Kumpulan Voir Sdn Bhd, to its Executive Deputy Chairman, Seow Khim Soon, for RM32.62 million.
Seow, who is also a director of Kumpulan Voir, has entered into a conditional sale and purchase agreement (SPA) with Vertice today.
Following the completion of the sale, he will relinquish his directorship in Vertice to concentrate on managing the fashion retailing business of Kumpulan Voir and also to avoid potential conflict of interest arising from having directorships in both companies.
In a filing with Bursa Malaysia, Vertice said the group continued to face challenges as a result of stiff competition from international fashion brands and other established brands in the local market, ever-changing consumers’ taste and preference, as well as rising operating costs.
“The soft consumer sentiment in Malaysia further aggravated the competition landscape in the local fashion retailing industry,” it said.
In view of the various challenges above, Vertice said the disposal would enable the company to use the proceeds to fund its construction division that had higher potential and better prospects.
It said 98.6 per cent, or RM32.17 million of the proceeds from the proposed disposal were intended to be utilised for working capital, and the remaining 1.4 per cent for estimated expenses for the disposal exercise.
“The completion in respect of the disposal of the sale shares shall take place on the completion date of the SPA, which is within 30 business days from the unconditional date or such other date as the parties may mutually agree in writing.
“Upon completion of the proposed disposal, Kumpulan Voir will cease to be the company’s subsidiary and become a 40 per cent associated company of Vertice,” it added. — Bernama
