K-One Technology Bhd has proposed to dispose of its entire stake in cloud solutions subsidiary G-AsiaPacific Sdn Bhd (GAP) to Japan’s Itochu Corporation and Itochu Singapore Pte Ltd for RM94 million in cash.
The proposed disposal will see wholly owned subsidiary K2 Meta Sdn Bhd sell its entire 100% equity interest in GAP, comprising one million ordinary shares, to Itochu Singapore and Itochu Corporation. Itochu Singapore will acquire a 60% stake for RM56.4 million, while Itochu Corporation will purchase the remaining 40% for RM37.6 million.
The purchase consideration will be settled entirely in cash, subject to certain adjustments relating to permitted dividends and agreed leakages under the share sale agreement signed on Aug 4.
Upon completion, GAP will cease to be an indirect wholly owned subsidiary of K-One.
K-One said the transaction represents a significant value realisation from its investment in GAP, which it acquired in June 2020 for approximately RM37.66 million.
The company expects to recognise a gain on investment of approximately RM47.6 million, reflecting a substantial premium over its original acquisition cost.
As part of the proposal, K-One intends to distribute approximately RM75 million of the proceeds to shareholders through dividends. The remaining funds will be used to support working capital requirements for the group’s continuing businesses.
