Propel Global group chief executive officer Angeline Lee
KUALA LUMPUR: Propel Global Bhd
has proposed to dispose of its 55% equity interest in Propel Chemicals Sdn Bhd (PCSB) to Hextar Kimia Sdn Bhd (HKSB) for RM9.07mil cash.
In addition, Rancak Nikmat Sdn Bhd and Wiramas Baiduri Sdn Bhd will also dispose of their collective 45% stake in PCSB to HKSB for RM7.42mil.
HKSB is a a 49%-owned subsidiary of Hextar Global Bhd while PCSB is principally involved in the manufacturing, trading and distribution of specialty chemicals.
Executive director/group chief executive officer Angeline Lee said the disposal was driven by PCSB's three-year financial losses and its struggles as a smaller player in the specialty chemicals market, competing against larger rivals with scale advantages.
“This divestiture represents a strategic move to exit an unprofitable venture with limited growth prospects,” she said in a statement.
The disposal is expected to be completed by November 2023.
