KUALA LUMPUR: Citaglobal Bhd, formerly WZ Satu Bhd, is exiting its bauxite mining venture under SE Satu Sdn Bhd to focus on a portfolio of businesses that include civil engineering and construction, oil and gas, power generation, property development, manufacturing and renewable energy.
It will divest its entire 49% stake in SE Satu to Spring Energy Sdn Bhd for RM4.8 million, it said in a bourse filing.
Citaglobal, however, intends to retain the 31.31ha of freehold agricultural land under SE Satu in Sungai Karang, Pahang, for the development of a renewable energy generation project along the East Coast Rail Link (ECRL). Hence, Citaglobal's indirect wholly-owned Sinergi Dayang Sdn Bhd will acquire the land from SE Satu for RM10.08 million.
This means Citaglobal will end up paying Spring Energy RM5.28 million, being the net effect of the two transactions.
Disposing of the bauxite mining business is in line with Citaglobal's vision of exiting legacy business as it intends to participate in technology driven sectors, said the group's executive chairman, president and major shareholder Tan Sri Mohamad Norza Zaharia in a statement on Thursday.
“Citaglobal is today in the final laps of its legacy business clean-up process,” he said.
“We are extremely pleased to be acquiring this piece of land in Sungai Karang. Not only is its location close to the ECRL project, it also has the suitable composition and requirements to house renewable energy,” he added.
Shares of Citaglobal closed half sen or 1.7% higher at 29.5 sen, giving it a market capitalisation of RM554.03 million.
Source : The Edge Markets