PETALING JAYA: Scope Industries Bhd is disposing of its wholly-owned subsidiary, Scope in Scope Manufacturers (M) Sdn Bhd (SMSB), to Singapore-based Luxshare Precision Singapore Pte Ltd for RM96.7mil.
In a filing with Bursa Malaysia, Scope said that since its inception, it has been principally involved in the manufacturing business, which is operated via SMSB.
“However, the business environment of the group’s manufacturing business has become increasingly challenging in light of stiffer competition amongst other local and foreign industry players as well as higher cost of production, which has led to margin pressures on the group.”
As a result, Scope said its manufacturing business had registered losses for the past three financial years.
“Upon completion of the proposed disposal, the group will be able to redeploy its financial resources to focus on its plantation and trading businesses.
“It is also the group’s intention to explore business opportunities with Luxshare upon completion of the proposed disposal, through its trading division.”