Stamford To Gain RM0.383 Mln From Disposal Of SCSSB Shares

KUALA LUMPUR, June 9 (Bernama) -- Stamford Group will gain RM0.383 million from the proposed disposal of eight million ordinary shares of its wholly-owned subsidiary, Stamford College (Selangor) Sdn Bhd (SCSSB), to Quill Construction Sdn Bhd.The proceeds from the proposed disposal will be utilised by the group for working capital purposes and exploring new business opportunities.The disposal, expected to be completed by the financial year ending Dec 31, 2007, will see Quill taking full management control over SCSSB and Stamford ceasing its equity interest to 20 percent.Stamford College Bhd executive chairman Datuk Abdul Halim Abd Samad said the proposed disposal would enable Stamford to diversify its earnings stream via joint venture to develop the land (under SCSSB) for mutual benefits."The joint-venture is based on a win-win situation. We are very happy, the shareholders are happy with our decision," he told Bernama when met at the company's extraordinary general meeting (EGM) here.Approval for the proposed disposal has been obtained from the shareholders during the EGM, said Abd Halim.On May 4, 2007, Stamford College had entered into a sale and purchase agreement (SPA) with Quill, a turnkey interior design contractor and consultants company, for the sale of the shares for RM16.0 million.SCSSB was incorporated in Malaysia in 1993 as a private limited company with an authorised share capital of RM10 million comprising 10 million shares of RM1.00 each.It was principally engaged in the provision of academic, tertiary, professional courses and management service activities. However, SCSSB has been dormant since the date of its incorporation except for rental income collection from its land in Petaling Jaya since November 2005.Its current use is being rented out to a third party for use as an open-air car park for a rental of RM12,500 per month. With the completion of the shares disposal, the land is intended to be developed into office blocks for lease rental or any other development which shall be determined by Quill.