MAA Group had announced back in November this year on its proposed disposal of 85% equity interest in its Philippines unit for RM230 million and the balance 15% for RM40 million, the group is now proceeding with informing shareholders on the proposed disposal.
The Proposed Disposal entails the disposal by MAAG of its subsidiary, MAAGAP, which is involved in its Philippines Business (i.e. nonlife insurance business). Upon completion of the Proposed Disposal and/ or exercise of the Option, MAAGAP will cease to be a subsidiary of MAAG. Post completion thereof, MAAG Group will exit the nonlife insurance business, as MAAGAP is the Group’s sole exposure to the nonlife insurance business. As such, following exit from the nonlife insurance business, the Group’s principal activity will be investment holding, and via its subsidiaries it will continue to provide education services, money lending and debt factoring, hotel management, hospitality consulting and short-term rental property management, and operate other segments including cinema operations.
MAA Group said the Proposed Disposal provides an opportunity for the Company to unlock and realise the value of its investment in MAAGAP and record a gain on disposal of approximately RM96.96 million. It will also allow the Group to allocate additional funds to its existing business segments to further grow/ strengthen its position in the respective sectors.