JCorp accepts Seaview's offer for DBhd, pares down stakes in non-core businesses

JCorp accepts Seaview's offer for DBhd, pares down stakes in non-core businesses
Business & Markets 2014
Written by Bernama
Tuesday, 18 February 2014 19:54

KUALA LUMPUR (Feb 18): Johor Corporation (JCorp) will pare down its shareholdings in non-core businesses to fulfil its corporate restructuring and rationalisation plan.

President and Chief Executive Datuk Kamaruzzaman Abu Kassim said this following JCorp's acceptance of an offer from Seaview Holdings Sdn Bhd to buy its 51 per cent equity in Damansara Realty Bhd (DBhd).

He said the proposed share sale agreement would see JCorp Group reducing its stake in DBhd to 13.8 per cent from 64.8 per cent while continuing to be one of the listed entity’s major shareholders.

"The process of gradually divesting shares in non-core investments has been ongoing as part of our asset rationalisation strategy to streamline and improve our core businesses," he said in a statement today.

Kamaruzzaman said the move to hive-off its stake in DBhd, a property and facilities management services provider, was in line with the state conglomerate’s aim to focus on its core businesses with greater growth potential.

“Given the wealth of experience of Seaview's controlling shareholders, we believe their professional and entrepreneurial skills can contribute significantly to long-term prospects and financial sustainability of DBhd,” he added.