KUALA LUMPUR (Oct 1): NTPM Holdings Bhd said it is disposing of its toilet rolls and tissue manufacturing subsidiary, as the firm has continuously incurred losses with little prospects of a turnaround in the near future.
The group is selling its entire 100% interest in NTMP Paper Mill (Bentong) Sdn Bhd) to XSD International Paper Sdn Bhd for RM27.5 million cash.
The disposal includes all of the subsidiary’s immovable and movable assets, save for all converting machines, office equipment, trademarks and liabilities of the firm, NTPM said in a filing with Bursa Malaysia.
The firm has a factory building and complex with a land area of 42,950 square metres (sq m) and a built up area of 8,000 sq m in Bentong, Pahang.
“The proposed disposal will allow the company to rationalise and streamline the group’s activities with a clear focus on maximizing returns,” NTPM said.
The disposal, it added, is expected to generate an estimated one-off gain of RM11.17 million to the group.
Following the disposal, NTPM’s earnings per share would rise to 2.80 sen, from 0.60 sen as of April 30.
NTPM shares finished 7.26% or 4.5 sen higher at 66.5 sen today, valuing the group at RM746.93 million. The counter saw 3.1 million shares exchanging hands.
http://www.theedgemarkets.com/article/ntpm-sells-lossmaking-toilet-rolls-manufacturer-rm275-mil
