UEM Sunrise South Africa Proprietary Limited has decided to divest its entire equity interest of 80.4% held in Roc-Union Proprietary Limited and claims at a total consideration of Rand 118.4 million to a property company there.
The company which is a wholly-owned subsidiary of UEM Sunrise Overseas Corporation Sdn Bhd will be disposing of its stake in the company for an estimated RM29.5 million. Upon the completion of the Proposed Divestment, Roc Union will cease to be a subsidiary of UEM Sunrise.
The Proposed Divestment is in line with the Company’s three-pronged turnaround strategic plan – ‘Triage’, ‘Stabilise’, and ‘Sustain’. The first phase, ‘Triage’ is focused on activities to strengthen financial performance and product portfolio, amongst others. It also includes streamlining core businesses to allow the Company to transform into a balanced real estate player. The decision to dispose of its entire equity in Roc Union is in line with the Company’s turnaround strategic plan as it allows the Company to realign its operations geographically and redirect resources to businesses and areas that offer greater potential.
