Ecofirst Consolidated Berhad and Ecofirst Opal Sdn Bhd had entered into a conditional share sale agreement with Urbansonic Sdn. Bhd. for the disposal of USB’s entire 26.0% equity interest in EOSB to ECB for a total cash consideration of RM26 and the simultaneous disposal by EOSB of its entire 51% equity interest in EHSB to USB for a total cash consideration of RM2,500,100, subject to the terms of the SSA.
For information, EHSB is the legal and beneficial owner of 7 parcels of land in the Mukim Sungai Buloh, District of Petaling, State of Selangor.
Effectively, the Proposed EHSB Disposal is undertaken to dispose off ECB and its subsidiaries’ interests in the Land to USB.
Upon the completion of the Proposed EHSB Disposal, EOSB will become a wholly-owned subsidiary of ECB, and EHSB will be fully disposed to USB.
As per the terms of the SSA, EHSB will be required to repay advances provided by EOSB and ECB and/or its related companies to it in the following manner:-
(i) USB shall advance RM10,000,000.00 to EHSB to repay EOSB*;
(ii) USB shall advance a further RM24,949,541.09 to EHSB to repay ECB and/or its related companies.
