Net proceeds are expected to stand at $1.84 million, and is set to be used for the group’s working capital needs.

Catalist-listed Jubilee Industries Holdings Nhd says its wholly-owned subsidiary, WE Total Engineering (WTE), has entered into a sale and purchase agreement (SPA) with MClean Technologies Berhad for the sale of WTE’s plastic business. 

Under the SPA, WTE’s plastic business has a cash consideration of RM6.04 million ($1.89 million). 

MClean Technologies is set to pay a sum of RM301,800 to WTE upon the execution of the SPA. The remaining balance sum of RM5.73 million is expected to be paid within a period of six months from the completion of the agreement. 

Currently, WTE has a share capital of RM16.04 million comprising 16,035,654 ordinary shares, as at Oct 8. 

Net proceeds are expected to stand at $1.84 million, and is set to be used for the group’s working capital needs. 

Additionally, the group says the proposed disposal will “monetise the investments for Jubilee Industries and conserve cash for future opportunities”. 

Following completion of the proposed disposal, WTE is expected to be a dormant subsidiary of the group and will cease any plastic injection moulding business.

On a pro forma basis, had the disposal been completed on March 31, there would have been no changes to Jubilee Industries’ net tangible assets (NTA) of $18.92 million, or NTA per share of 6.05 cents. 

Meanwhile, had the proposed disposal been completed on April 1, 2023, the group’s FY2023 loss would remain unchanged at $1.78 million, or a loss per share of 0.57 cents. 

Shares in Jubilee Industries Holdings closed 0.2 cents lower, or down 5.0%, at 3.8 cents on Oct 8.