Omesti sees RM3.5m loss from DGSB stake disposal

TheEdge Tue, Aug 21, 2018 10:20am - 5 years View Original


KUALA LUMPUR: Omesti Bhd has disposed of a 7.38% stake in Diversified Gateway Solutions Bhd (DGSB) to Insas Bhd for RM6.93 million or 6.3 sen per share via direct business transactions to pare down its share margin loans and for working capital.

Omestic said the disposal was carried out after reviewing the group’s investment portfolio and overall market conditions.

This brings Omesti’s stake in DGSB to 5.65% from 13.03% previously, and therefore DGSB ceases to be an associate of the group.

Omesti said the group is expected to incur a loss of RM3.5 million from the disposal.

In a filing with Bursa Malaysia yesterday, Omesti said its wholly-owned subsidiary Omesti Holdings Bhd had disposed of 110 million shares, or a 7.38% stake, in DGSB to Insas’ wholly-owned unit Insas Technology Bhd last Friday.

The disposal consideration was about 30% below its cost of investment of RM9.9 million in April 2010. According to the filing, the disposal was done last Friday, when the share price of DGSB was trading at between seven sen and 7.5 sen in the open market.

The disposal is deemed a related party transaction by virtue of Datuk Seri Thong Kok Khee’s common directorship and substantial shareholdings in Omesti and Insas.

Datuk Mah Siew Kwok, who is Omesti’s non-executive chairman and a substantial shareholder with an 18.97% direct stake in the group, is also DGSB’s chairman and shareholder with a 0.29% direct stake.

Insas executive director Datuk Dr Tan Seng Chuan is also a shareholder of DGSB, with a 1.06% stake, and a director of Insas Technology.

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