By Sharen Kaur
Paramount Corporation Bhd is selling its investment in three subsidiaries engaged in the private education sector for a total of RM120 million in order to concentrate on real estate development.
The subsidiaries are Sri KDU Klang Sdn Bhd (SKK), Sri KDU Sdn Bhd, and Paramount Education Sdn Bhd (PESB) (SK).
Paramount told the stock exchange today that it has signed a conditional share sale and purchase agreement with XCL Education Malaysia Sdn Bhd to dispose of all of its remaining equity interests in the companies.
It holds stakes of 30.3 per cent, 20 per cent, and 20 per cent, respectively in PESB, SKK, and SK.
Paramount said a pro forma net loss of RM38.96 million is anticipated after disposing its equity in the three companies.
It said that the proposed disposal is a part of its strategy to leave the education sector and concentrate on expanding its core property development business and looking into new prospects in other sectors.
The proposed disposal is anticipated to be completed by the end of the 2022 fourth quarter, according to the filing.
As published: New Straits Times on 26 September 2022, Monday