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MMM sells subsidiary for $4mn


January 17, 2008

MMM sells subsidiary for $4mn

Malaysian Merchant Marine Berhad (MMM) has signed an agreement to sell its entire stake in MMM Ventures Ltd (MMMVL) to Quayside Enterprises Pte. Ltd for US$4 million.

MMM said it expects to book a net profit of RM13,245,999 (US$4 million) from the transaction which was signed on 15 Jan.

The sale of the unit is part of MMM's restructuring plan to return the group to profitability, it said in a statement to Bursa Malaysia on Jan 15.

MMMVL is involved in the business of chartering vessels and subsequently chartering out the same vessel. Profit is earned by way of the differential of the in charter rates and the out charter rates.

"Despite the profit potential of this business, the Board, on the advice and recommendations of senior management has concluded that the inherent risks posed by the business cannot be mitigated under the current environment of MMM," the statement said.

"An independent risk assessment conducted further concurred with this finding."
Based on the forgoing, and in view of the attractive offered sale price, the board decided that it would be in the best interest of the shareholders to divest from this business immediately and lock in assured profits immediately, MMM said.

Courtesy Bernama

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