E&O Property Development to sell Fututech shares for RM8.78mil

KUALA LUMPUR: Eastern & Oriental Bhd's (E&O) wholly-owned subsidiaries E&O Property Development Bhd and Samudra Pelangi Sdn Bhd has proposed to dispose of their entire securities interest in Fututech Bhd for RM8.78mil cash.

In a filing with Bursa Malaysia, E&O said both companies had on March 24 entered into a share sale agreement with Egovision Sdn Bhd in relation to the Fututech share sale.

It said the original cost of investment of E&O group in Fututech was RM27.34mil, adding that the unaudited net carrying value of the investment in Fututech shares and warrants as at Dec 31, 2010 were RM7.65mil and RM2.29mil respectively.

“Based on the above net carrying value, the proposed disposal is expected to record a loss of RM1.159mil, comprising a gain from disposal of shares of RM490,000 and loss on fair value adjustment in warrants of RM1.649mil,” it said.

The company said the proceeds from the proposed disposal would enable E&O group to redeploy its resources into its higher yielding core businesses.

Fututech shares closed at 51 sen yesterday, up one sen.

By The Star