KUALA LUMPUR (Dec 24): Pacific & Orient Bhd (POB) is disposing of its 21.91% stake in Singapore-based data software company HiringBoss Holdings Pte Ltd (HHPL) for US$19.83 million (RM83.11 million).

The group said it is joining other shareholders of HHPL in selling their entire interests in HHPL to Access UK Ltd under an agreement signed on Friday (Dec 24).    

HHPL is involved in provision of data-driven software for both corporate human resource and recruitment agencies, with its offices in Singapore, Vietnam, Australia, Spain, the UK, and the US. 

In a bourse filing, POB said it is disposing of its stake in HHPL to capitalise on the high returns on its investment which will strengthen its cash flow position, in line with the group’s investment strategies in start-up companies. 

The proceeds from the disposal will be used to fund its working capital and future investments, the group said.

It added that the disposal consideration was arrived at on a willing buyer and willing seller basis which represents a price-earnings multiple of approximately 231 times. 

POB said the exercise is expected to have a positive effect of 28 sen on both earnings per share and net assets per share of the group, and potentially reduce its net gearing ratio from 33.5% to 27.1% for the financial year ended Sept 30, 2021 (FY21).

The disposal will also result in a gain of US$17.88 million (RM74.94 million) for FY22, it said. 

POB’s shares closed up one sen or 1.07% higher at 94.5 sen, valuing the group at RM269.87 million. The counter saw 106,600 shares changed hands.