"The proposed reorganisation is an important step in Kossan Group's rationalisation in streamlining its business operations. The objective is to deliver operational efficiency and provide the Kossan Group with greater operational agility and flexibility to respond quickly in an ever evolving market," Kossan said in a filing with Bursa Malaysia today.
In order to effect the proposed reorganisation, Kossan today signed separate sale and purchase agreements with Kossan Gloves and Kossan Engineering (M) Sdn Bhd to purchase the businesses and undertakings, including relevant assets and liabilities, as well as with Kossan Industries on the transfer of the group's technical rubber business to Kossan Industries.
The proposed reorganisation is not expected to have any material impact on the net assets and gearing of Kossan Group.
Barring any unforeseen circumstances, and subject to the fulfillment of applicable conditions precedent, Kossan expects to complete the proposed reorganisation within the first half of year 2016.
Kossan shares rose 27 sen or 3.02% to close at RM9.20 today, bringing a market capitalisation of RM5.7 billion.
(Note: The Edge Research's fundamental score reflects a company's profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)
KOSSAN (7153) - Kossan streamlines its business ops
http://www.theedgemarkets.com/my/article/kossan-streamlines-its-business-ops
