not vested
MAA Group aborts plans to invest in Russian oil producerby Samantha Ho
KUALA LUMPUR: MAA Group Bhd said yesterday it had aborted its plans to invest in an independent oil producer in Kaliningrad, Russia after assessing the risks associated with the potential investment.
In a filing with Bursa Malaysia yesterday, MAA said it will now use the
RM28 million from the proceeds of the sale of its stake in MAA Takaful Bhd to focus on acquiring new businesses and/or assets to enhance the group’s earnings profile, regulate its financial condition and address its Practice Note 17 (PN17) status.
“Relevant announcement(s) will be made by the company where required,” it added.
On June 30, 2016, MAA completed the disposal of its entire 75% stake in MAA Takaful to Zurich Insurance Co Ltd for RM393.75 million.
However, the actual disposal proceeds arising from the disposal amounted to
RM364.4 million, or RM29.35 million less, due to certain downward adjustments in accordance with the terms and conditions of the share purchase agreement dated May 4, 2016.
As at April 3 this year, MAA said it had
yet to fully utilise RM233.88 million of the disposal proceeds. Apart from the RM28 million for the potential investment in the Russian oil producer, it had proposed to
retain RM40.25 million for future investment opportunities and
RM30.85 million for working capital requirements, including staff costs, office rentals and other payables.
MAA had also proposed to pay
RM32.82 million as dividends for its shareholders for financial year 2018 (FY18) and FY19, after having issued RM8.21 million in dividends for FY17.
The company triggered the PN17 status on Sept 30, 2011 when it had completed the sale of its main insurance business.
MAA shares closed unchanged at 68 sen per share yesterday, bringing it a market capitalisation of RM184.99 million.
Source: The Edge
http://www.theedgemarkets.com/article/m ... l-producer