Time Engineering Bhd has disposed of 32.2 million shares in Time dotCom Bhd (TdC), representing 1.27% of the issued and paid-up share capital of TdC, in the open market for RM18.9mil cash.
In a filing with Bursa Malaysia, Time said the stake was part of the TdC shares held by Time that were pledged to Bank Pembangunan Malaysia Bhd (BPMB) as security for the 712.5 million redeemable secured loan stocks (RSLS) at nominal value of 48 sen each issued to BPMB on June 11, 2009.
The company said the proceeds from the stake disposal would be paid to BPMB for the redemption of the RSLS.
Following the disposal, Time now holds a 25.83% stake in TdC.
Time said any excess proceeds after the payment to BPMB would be used for working capital.
Time said it registered RM3.45mil gain from the disposal and the interest savings from the early redemption of part of the RSLS would allow Time to reduce its interest expense on the RSLS of about RM380,000 per annum.
On July 15, Time had announced the disposal of 1.59%, representing 40.3 million shares, in TdC for RM20.83mil.
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