KUALA LUMPUR: Key Alliance Group Bhd (KAG) has ceased to be a substantial shareholder of XOX Bhd after disposing of 5.02 million ordinary shares in the company on June 26.
In a Bursa Malaysia filing, the IT-based company said the disposal reduced its stake in XOX to 3.54% from 6.25%, below the 5% threshold required for substantial shareholding status.
“The disposal of shares is part of the group's capital management strategy to realise value and reallocate funds for strategic priorities.
“The proceeds received from the disposal of shares will be used by the group for working capital,” KAG said.
It said the disposal is not expected to have any material impact on its earnings per share, net assets per share, gearing or issued share capital for the financial year ending March 31, 2027.
The transaction does not require shareholders' or regulatory approval.
The company also disclosed that executive director Roy Ho Yew Kee, who serves on the boards of both KAG and XOX, abstained from all board deliberations and voting on the disposal.
As at June 26, Roy held a 6.17% direct interest in KAG but no shareholding in XOX.