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KUALA LUMPUR: Komarkcorp Bhd’s wholly owned subsidiary General Labels & Labelling (M) Sdn Bhd (GLLM) has entered into a share sale agreement (SSA) with D’Nonce Technology Bhd for the disposal of 99.9991% of the issued share capital in Komark (Thailand) Co Ltd for RM9.1mil.

In a filing with Bursa Malaysia, Komarkcorp said upon completion of the SSA, Komark Thailand will cease to be a subsidiary of GLLM and indirect subsidiary of Komarkcorp.

Komark Thailand is principally involved in the manufacturing and selling of self-adhesive labels according to specifications and designs instructed by its customers.

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Komarkcorp said the purchase consideration of RM9.1mil shall be fully satisfied by the allotment and issuance of 58.7 million new D’Nonce ordinary shares at the issue price of RM0.155 for each new D’Nonce shares.

“The proposed disposal is undertaken for the purpose of streamlining operations to concentrate on local operations (Klang Valley and Johor).

“In the previous 12 months, the group has disposed of its Singapore and Indonesia operations to focus on local exposure.

“This move is part of the group's Covid 19 management strategy to ease the burden of cross border management for manufacturing business which requires intensive operational scrutiny,” it said.