Tuesday, December 27, 2011

Metrod up on plan to dispose Austria-based unit

KUALA LUMPUR (Dec 27): Metrod (Malaysia) Bhd shares rose in the afternoon session on Tuesday after the company said it would realise a gain of about RM74.5 million from the disposal of its Austria-based units for RM202.2 million ('49 million).

At 4.20pm, Metrod was up five sen to RM1.95 with 14,000 shares traded.

The company had earlier announced that its wholly-owned subsidiary, Metrod (Singapore) Ptd had entered into an agreement with GEP II Beteiligungs GmbH to dispose ASTA Holdings GmbH and ASTA Elektrodraht GmbH.

ASTA Holdings was incorporated in Austria and is principally an investment holding company, and is a wholly-owned subsidiary of Metrod Singapore.

Meanwhile, ASTA Elektrodraht's principal activities include functioning as a general partner of the limited commercial partnership, ASTA KG and leasing of premises to ASTA KG. The equity ownership of ASTA Elektrodraht is held by ASTA Holdings and Metrod Singapore in the proportion of 99%:1%.

On the rationale for the disposal, Metrod said it was timely given the challenges faced by Metrod in relation to the businesses of the ASTA Target Group in light of the current volatile and uncertain global economic conditions, increased market competition, threat of recession and deteriorating future outlook.

As for the utilisation of proceeds from the disposal, Metrod said it was still assessing and evaluating plans for the use of the cash proceeds from the Proposed Disposal with the objective of maximising shareholders' value which may include, but not limited to, the acquisition of viable businesses/assets.


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