6th May 2015 11:48
LONDON (Alliance News) - Resource Holding Management Ltd Wednesday said it has sold part of its stake in Malaysia's PUC Founder (MSC) Bhd for around GBP1.3 million, which will allow it to be classed as an investment company under AIM rules.
The company said it conducted the sale through its wholly owned subsidiary RedHot Media International Ltd, selling 50.0 million shares at a price of MYR0.14 per share to raise a total of MYR7.0 million, or just under GBP1.3 million.
Following the sale, Resource Holding has around 493.2 million shares in PUC Founder, representing a 46.4% stake. The company also holds 36.2 million warrants to subscribe to new PUC Founder shares.
That means Resource Holding has lost its controlling shareholding in PUC Founder, and the company said it has now "substantially divested itself of its historical trading businesses" and allow Resource Holding to be classified as an investing company under AIM rules.
PUC Founder's principal activities include the development and marketing of biometrics devices and applications, advertising and media brokerage and consultancy, electronic payment solutions and the development of renewable energy projects. PUC Founder reported revenue of around GBP9.9 million in 2014 with pretax profit coming in at GBP1.9 million.
"The board of Resource Holding believes that the disposal of a portion of the remaining shares held by RedHot International is the optimal way of unlocking some of the value of its only asset and, in doing so, provide sufficient capital for the company to pursue its investing policy," said Resource Holding.
The company said it would consider reinvesting in PUC Founder in the future should it be in shareholder interest, but said it would always keep any future investments under 50% to remain within AIM rules to remain an investing company.
Resource Holding will now need to make at least one acquisition that constitutes a reverse takeover under AIM rules before May 6, 2016, to ensure it implements its investing policy or face its shares being suspended from trading.
Resource Holding shares were up 1.1% to 11.62 pence per share on Wednesday.
By Joshua Warner; [email protected]; @JoshAlliance
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