SINGAPORE (May 7): Envictus International is disposing its loss-making beverage business for an aggregate consideration of RM15.3 million ($5.2 million).
The purchaser is Hinoki Beverages, a wholly-owned subsidiary of Bursa Malaysia-listed Can-One.
Envictus intends to use the net proceeds from the proposed disposal of RM14.36 million for general working capital purposes.
The properties put up for sale consist of two factories in Negeri Sembilan while the assets include plant machinery, lab and other equipment and motor vehicles.
Explaining the rationale of the sell, Envictus says the beverage business is loss-making and a non-core business of the group, contributing to only 3% of the revenue of the group for FY17 and contributing to only 2% of the revenue of the group for 2Q18.
The group intends to only maintain its beverage trading business for selected customers.
“Beverage manufacturing orders, mainly for the export market, will be fulfilled instead via OEM by third parties,” the group adds.
Shares in Envictus closed at 35 cents on Monday.
