KUALA LUMPUR (July 2): Key Alliance Group (KL:KGROUP) said on Thursday that the information technology firm is no longer a substantial shareholder of telecommunications company XOX Bhd (KL:XOX).

This follows its disposal of 5.02 million shares in XOX on June 26, reducing its total shareholding from 6.25% to 3.54%, according to Key Alliance's bourse filing.

The transaction price was not disclosed, but based on XOX's closing prices of 19.5 sen that day, Aberdeen could have paid about RM979,850 for the shares.

Key Alliance said the proceeds received from the disposal will be used for working capital.

Key Alliance said the stake disposal is part of the group's move to "realise value and reallocate funds for strategic priorities".

It added that the disposal will not affect its paid-up share capital and expects no significant impact on earnings for its financial year ending March 31, 2027.

The group also said that Roy Ho Yew Kee, executive director of both Key Alliance and XOX, will be abstaining from all deliberations and voting in relevant board meetings regarding the disposal.

Ho holds a direct interest of 6.17% in Key Alliance and none in XOX.

Key Alliance has been loss-making in about eight of the past 10 years. For the financial year ended March 31, 2025 (FY2025), the group’s net loss widened to RM14.45 million from RM11.21 million in FY2024, with revenue falling to RM10.68 million from RM33.88 million.

Key Alliance shares closed unchanged on Thursday at 0.07 sen, with a market capitalisation of RM8.6 million. Year to date, the counter is down 26.32%.