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&rsquo s plastic business. 

 

Under the SPA, WTE&rsquo 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&rsquo s working capital needs. 

 

Additionally, the group says the proposed disposal will &ldquo monetise the investments for Jubilee Industries and conserve cash for future opportunities&rdquo . 

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&rsquo 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&rsquo s FY2023 loss would remain unchanged at $1.78 million, or a loss per share of 0.57 cents.