KUALA LUMPUR (Feb 5): Careplus Group Bhd will sell 50% of its loss-making subsidiary to Ansell Services (Asia) Sdn Bhd for RM26.81 million cash as part of a joint venture deal between the two companies. In a statement today, Careplus said Ansell is buying 14.55 million shares representing a 50% stake in Careplus’ wholly-owned unit Careplus (M) Sdn Bhd (CMSB) for RM26.81 million and that an agreement had been signed. Of the proceeds, Careplus expects to use RM10 million for capital expenditure, and another RM6 million for working capital. Additionally, Careplus said it agreed to grant Ansell options to buy Careplus’ remaining stake in CMSB, or to sell back its stake in CMSB to Careplus, pending certain criteria such as change in Careplus shareholding or the period of the joint venture. Shares of Careplus gained 5 sen or 16.67% to close at 35 sen, which translates into a market capitalisation of RM185.98 million.

Source: The Edge Markets February 05, 2020 12:22 UTC