PETALING JAYA: Chuan Huat Resources Bhd's (CHRB) wholly-owned unit, Chuan Huat Holdings Sdn Bhd, is selling its 63.86% stake in Pineapple Resources Bhd (PRB) for RM26mil cash to Gan Kok Xan and Yeoh Guan Fook.
In a filing with Bursa Malaysia, CHRB added that Gan and Yeoh will be obliged to extend a mandatory general offer to acquire all the remaining shares in loss-making PRB at 84 sen per offer share.
The sale sees Gan, 49, holding 35.86% of the 63.86% stake in PRB sold by CHRB, while Yeoh, 50, holds the remaining 28%.
PRB is listed on the ACE Market and is involved in the retailing of computers and related accessories, operation of restaurants, distribution of food and beverage ingredients, as well as the franchising of restaurant operations.
CHRB added that the disposal is expected to result in a net gain of RM18mil. The proceeds from the share disposal will be utilised for its working capital needs and repayment of bank borrowings.
In a separate filing, PRB noted the offerors intend to maintain the listing status of PRB on the ACE Market of Bursa Securities.