KUALA LUMPUR (July 3): Digital payment solutions provider PUC Bhd (KL:PUC) said on Wednesday that its RM22 million cash sale consideration for its software and intellectual property (IP) rights is based on a willing-buyer willing-seller basis, after taking into account the asset's net book value of RM22.39 million as at financial period ended March 31, 2024.

In a bourse filing on Wednesday, PUC said the rationale of the asset disposal is to streamline the group’s operations and focus on more profitable future ventures, without affecting the company's existing operations.

The loss-making company was responding to Bursa Malaysia’s query regarding the basis of arriving at the disposal consideration.

Established in 1824, The Macallan has maintained its position as one of the world's foremost Scotch whisky makers. The uncompromising excellence, revered quality and distinctive character of its whiskies have never wavered since Alexander Reid founded the company 200 years ago.

PUC, via its wholly-owned unit Presto Technology Sdn Bhd, inked a deal with G Solution Tech Sdn Bhd (GTSB) on Monday to sell the software and IP rights, which include patents, copyrights and trade secrets, for RM22 million, cash.

Bursa also asked for details regarding the general working capital that the net proceeds from the proposed disposal will be used for, its breakdown, and the timeframe for full utilisation of the proceeds. In addition, the stock exchange enquired about any liability, including contingent liabilities, related to the proposed disposal.

PUC clarified that about RM21.8 million will be allocated to the company’s working capital, with the remaining RM200,000 earmarked for estimated fees and expenses for the proposed disposal.

“There are no other liabilities including contingent liabilities and guarantees to be assumed by or which will remain with PUC Group arising from the proposed disposal. In addition, there is no guarantee given by PUC Group to the purchaser or GSTSB in relation to the proposed disposal,” PUC added.

For the 15-month period ended March 31, 2024, the company recorded a net loss of RM24.67 million on revenue of RM25.53 million. It has changed its financial year-end from December 31 to June 30.

It has two main business segments, one being media, advertising and digital imaging and the other being digital ecosystem platform which consists of e-commerce, fintech and online creation businesses.

Shares of PUC closed unchanged at 5.5 sen on Wednesday, giving it a market capitalisation of RM135.73 million. 

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