KUALA LUMPUR: Vertice Bhd has proposed to dispose of 40% equity interest in Kumpulan Voir Sdn Bhd for RM9mil cash.

       In a filing with Bursa Malaysia, the construction group said it had entered into a share sale agreement with Distinct Seasons Sdn Bhd for the proposed disposal.

       Upon completion of the proposed disposal, Kumpulan Voir will cease to be an associate company of Vertice.

       The principal activities of Kumpulan Voir are in designing, branding and retailing of fashionable ladies’ apparel, footwear and accessories and in property and investment holding activities.

       Vertice said the disposal consideration was arrived at on a willing buyer-willing seller basis.

       “Based on the latest unaudited consolidated financial statements of Vertice for the 9-month FPE Dec 31, 2021, the proposed disposal is expected to result in a loss on disposal of RM8.4mil, being the difference between the disposal consideration of RM9mil and the net book value of Vertice’s investment in Kumpulan Voir of RM17.4mil,” Vertice said.

       Vertice said the proposed disposal represented a strategic move as the group would be able to fully divest its exposure to Kumpulan Voir, which has been incurring consecutive losses over the past few financial years and is facing challenging times due to the Covid-19 pandemic.

       “Due to the dismal performance of Kumpulan Voir, Kumpulan Voir requires the group to incur further financing to support the business operations of Kumpulan Voir. The proposed disposal will allow the group to limit its financing obligations in this regard (if such obligation arises),” it added.