KUALA LUMPUR: MAA Group Bhd (MAAG) today said it has aborted an almost four-year plan to take-over Turiya Bhd and instead sold its 57.78 per cent stake to Khidmat Kejora Sdn Bhd (KKSB) and Neo Pixel Sdn Bhd (NPSB), for RM52.9 million.
MAA Group served a take-over notice to the board of directors of Turiya on June 22, 2021, after purchasing the 57.78 per cent interest in Turiya from Ithmaar Bank for RM23.8 million.
However, the prolonged litigation between Empire Holdings Ltd and MAAG over the offer over the past three years hindered the ability of MAAG to initiate the offer.
On April 15, 2024, MAAG received the Securities Commission of Malaysia's approval to withdraw the offer and dispose of its shares.
MAAG views the disposal as an excellent opportunity for the company to unlock and realise the value of its investment in Turiya at the disposal price.
It will allow the company to re-strategise and redeploy its financial and capital resources.
This may include using the disposal proceeds for investment opportunities such as expanding existing businesses, pursuing new ventures, acquiring assets, or for general working capital purposes at MAAG.
Meanwhile, MAAG said the RM52.9 million proceeds from the sale will be used for investment purposes such as expanding existing businesses, exploring new ventures, acquiring assets, and covering general operating costs for the MAAG group of companies.
Going forward, MAAG said the key focus of the company will remain on the development of its existing businesses. These include education, hospitality services, cinema, money lending, and debt factoring services segments, as well as any new businesses or investments acquired by the company.
The company said it will continuously improve performance and accelerate the future growth of these businesses. MAAG also noted that proposed disposal and the gain on disposal is in the best interest of the company.
The proposed disposal is not expected to result in MAAG becoming a cash company.
KKSB and NPSB is run by Tan Sri Mohan MK Swami and Datuk Seri Dr Shamir Kumar Nandy respectively.
Turiya's share price was up 6.49 per cent to 41 sen a share, while MAA Group was up 3.75 per cent to 41.5 sen a share, following the announcements.