Kanger to dispose of Chinese bamboo floor firm for RM20m

TheEdge Mon, Mar 28, 2022 09:46pm - 2 years View Original


KUALA LUMPUR (March 28): Kanger International Bhd is disposing of China-based bamboo flooring company Ganzhou Kanger Industrial Co Ltd for 30.22 million yuan (RM20 million), as it seeks to streamline its business to focus on the construction business.

In a filing with Bursa Malaysia, Kanger said the group has entered into a deal to sell its 100% stake in the Chinese company to Zeng QinHu. Zeng, 69, is a Chinese national involved in the business of project investment.

Kanger said the disposal is in line with its objective of streamlining its businesses to focus on the construction segment, as well as to unlock the value and monetise Kanger's investment in Ganzhou Kanger group of companies.

The disposal, it added, is expected to help reduce Ganzhou Kanger group of companies’ debt, which stands at 63.44 million yuan (RM41.53 million).

It is also expected to reduce Kanger’s gearing from 0.13 times to 0.05 times.

Kanger said  the sale is expected to be completed in the first quarter of 2022.

Shares in Kanger closed unchanged at 8.5 sen on Monday (March 28), giving it a market capitalisation of RM51 million.

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