By TMR

OCR Group Bhd has entered into a share sale agreement with Ooi Joul Sion to sell its entire stake in Takaso Rubber Products Sdn Bhd for RM8 million.

Upon completion of the disposal, Takaso and its fully-owned unit, Takaso Marketing Sdn Bhd, will cease to be subsidiaries of OCR, the group said in an exchange filing Tuesday.

Takaso is a manufacturer of rubber products and baby products, and trades in baby accessories and apparel, while Takaso Marketing is in the business of marketing rubber products and baby products.

The former registered a net loss of some RM1 million for the financial year ended July 31, 2017 due to a slowdown in sales, thus the disposal will enable OCR to stop consolidating Takaso’s losses into the group’s income statements following the completion of the disposal.

The disposal will also allow the group to concentrate fully on its existing business of property development and construction. It said the gross proceeds from the disposal are to be utilised for working capital purposes, the breakdown of which has yet to be determined.

The disposal is expected to be completed within 14 days from the date of the agreement.