KUALA LUMPUR: Protasco Bhd's share price fell 12.5 per cent after it signed a share sale agreement (SSA) with Star Teenagers International Sdn Bhd for the disposal of Ikram Education Sdn Bhd for RM30 million.
The company's stock was trading at 31 sen, giving it a market capitalisation of RM156 milion.Some 4.2 million shares changed hands.
Trading in Protasco's shares were suspended until 10 am earlier following the announcement of the deal between wholly owned subsidiary Kumpulan Ikram Sdn Bhd and Star Teenagers on July 19 to dispose 20 million of its entire ordinary share in Ikram Education.
Kumpulan Ikram KISB is involved in investment holding, engineering and consultancy services, hotel operations and property management.
Star Teenagers is principally engaged in educational support services for provisions of non-instructional services, activities of holding companies and business management consultancy services.
According to Protasco, the proposed disposal is expected to result in a gain of about RM12.7 million.
"The proposed disposal of Ikram Education provides an opportunity for the company to unlock and monetise its investment in Ikram Education taking into consideration that its operations are not considered an essential segment of Protasco," Prostasco said in its filing with Bursa Malaysia Securities.
Ikram Education has been incurring net losses for the past few years and the proposed disposal, it is expected to improve the cash flows, earnings and net assets of the group.
"The net proceeds from the proposed disposal will be utilised as working capital for the group," it said.