PETALING JAYA: Citaglobal Bhd (formerly WZ Satu Bhd) is disposing its 49% stake in bauxite mining company SE Satu Sdn Bhd (SE Satu) for RM4.8 million, hence exiting the mining business.
As part of the settlement, Citaglobal via its indirect wholly-owned subsidiary Sinergi Dayang Sdn Bhd will acquire a piece of freehold land for RM10.08 million (audited book value RM13.44 million as of Dec 31, 2021) in the vicinity of the East Coast Rail Link (ECRL) project.
Citaglobal intends to utilise the land measuring 31.313 hectare located in Sungai Karang, Pahang for its ECRL independent power producer (IPP) project.
Citaglobal executive chairman and president and major shareholder Tan Sri Dr Mohamad Norza Zakaria said not only is its location close to the ECRL project, it also has the suitable composition and requirements to house renewable energy.
“Furthermore, disposing the bauxite mining business is in line with Citaglobal’s vision of exiting our legacy business as we look forward to participate in technology driven sectors. Citaglobal is today in the final laps of its legacy business clean up process,” added Mohamad Norza.
The deal will also sees Citaglobal paying RM5.28 million to Spring Energy Sdn Bhd (SESB) which is a wholly owned subsidiary of Spring Energy Resources Bhd. SESB will go back to owning a 100% stake in SE Satu.
Assuming that the proposed disposal had been effected on Dec 31, 2021, Citaglobal said it is expected to realise a net gain on disposal of approximately RM2.01 million, representing an earnings per share of approximately 0.3 sen based on the weighted average number of 663.95 million shares.
Both the disposal consideration of the 49% stake in SESB, and the land acquisition consideration of RM10.08 million arrived on a “willing-buyer willing-seller” basis.
