KUALA LUMPUR (Aug 23): AwanBiru Technology Bhd, formerly known as Prestariang Bhd, has disposed of its 51% stake in Prestariang O&G Sdn Bhd (POGSB) to its joint venture (JV) partner MIE Corporate Holdings Sdn Bhd as part of the technology and talent company’s rationalisation plan to discontinue non-profitable operations.

AwanBiru Technology has today entered into a sale and purchase agreement with MIE for the disposal for RM113,213, the proceeds of which will be used by AwanBiru Technology for working capital.

It noted that the disposal enables the reallocation of the group’s resources into its more profitable business segments that could yield positive results in the immediate term.

"The disposal is also in line with the group's intention to focus on providing competency and professional development in the digital space," said AwanBiru Technology in a bourse filing today.

The completion of the disposal is expected to result in a loss on disposal of RM73,627 for AwanBiru Technology.

The cost of investment in POGSB by AwanBiru Technology amounted to RM178,500. POGSB posted a net loss of RM154,000 on revenue of RM4.44 million for the financial year ended June 30, 2020.

"The proposed disposal will allow the group to discontinue a loss-making operations that has negatively impacted the group’s results and allow the group to reallocate the group’s resources into more profitable operations. This is expected to yield a positive effect on the earnings per share of the group in subsequent financial years, said AwanBiru Technology.

POGSB was incorporated on June 20, 2013 as a JV between AwanBiru Technology (51%) and MIE (49%) to jointly undertake sourcing, training and supplying skilled workers in the country, particularly for the Refinery and Petrochemicals Integrated Development project in Pengerang, Johor and related industries in general.

AwanBiru Technology shares closed up 6.5 sen or 9.15% at 78 sen today, bringing a market capitalisation of RM611.57 million.