KUALA LUMPUR: Nexgram Holdings Bhd is selling its entire 69.6% stake in loss-making Godynamic Investments Ltd (GIL), which is involved in mobile application services, for RM34.8mil.
Nexgram, which is involved in properties and telecommunications, said on Wednesday GIL posted net losses of RM11.02mil in the eight months of 2015.
It said GIL was not expected to continue to benefit from the cost cutting strategy in 2016 due to tougher business environment.
“Therefore, upon completion of the proposed disposal, Nexgram could discontinue to consolidate the financial results of GIL Group,” it said.
Nexgram said it could could be able to unlock its investment in GIL Group as it has intellectual property for mobile technologies which it has failed to deliver sustainable profits to Nexgram.
It added that after the sale, it would be able to focus on other existing profitable business segments such as property and trading of surveillance equipment.
“The proceeds arising from the proposed disposal shall be utilised for the working capital requirements and for future business expansion of Nexgram,” it said.