19th May 2015 14:00
LONDON (Alliance News) - Resource Holding Management Ltd Tuesday said it has around GBP2.75 million in the bank following the sale of a stake in PUC Founder (MSC) Bhd to implement its investing policy.
On May 5, the company sold part of its stake in Malaysia's PUC Founder (MSC) Bhd for around GBP1.3 million, which allowed 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 that disposal, the company does not hold a controlling interest in PUC Founder, and said the GBP2.75 million figure does not include any cash held in PUC Founder which is not available to the company.
Resource Holding said it reported a cash balance of GBP3.5 million in March, but said this figure took into account the cash balances held by PUC Founder.
Resource Holding said it may have the opportunity to sell a further stake in PUC Founder to raise further funds for its investing policy "subject to the prevailing demand". Red Hot is currently entitled to reduce its holding in PUC Founder and from 2016, Resource Holding can also reduce its holding in the company further. From 2017 onwards, Resource Holding will not face any restrictions on disposing of PUC Founder shares, it said in a statement.
Resource Holding shares were down 5.8% to 8.01 pence per share on Tuesday afternoon.
By Joshua Warner; [email protected]; @JoshAlliance
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
RHM.L