KUALA LUMPUR (April 12): Asia Bioenergy Technologies Bhd has upped its stake in loss-making Focus Dynamics Group Bhd by an additional 3.38% to 19.28%.
In a filing with Bursa Malaysia today, Asia Bioenergy said its wholly-owned subsidiary Asiabio Capital Sdn Bhd (ACSB) had acquired 26.24 million shares of the ACE Market-listed company between March 10 and April 11 for a combined RM2.57 million via the open market.
“Pursuant to the investment in Focus Dynamics, ACSB has increased its shareholding stake from 15.91% to 19.28% or 149.84 million shares in the company,” it added.
Asia Bioenergy said its investment in Focus Dynamics is part of its decision to invest in quoted securities that have growth prospects.
“The investment allows the group to hold a strategic stake in Focus Dynamics as Asia Bioenergy believes that the food and beverage (F&B) operations of Focus Dynamics have potential for growth through collaboration and cross-selling of products and services between the group’s investee companies,” it added.
Asia Bioenergy is of view that Focus Dynamics’ F&B business will provide a stable source of income for Focus Dynamics in the near term and with the diversification into property investment and management, will further improve its long term outlook and Asia Bioenergy’s potential return of investment.
Asia Bioenergy said its investment in Focus Dynamics was funded entirely from the technology incubator funds of the group.
Asia Bioenergy shares closed unchanged at 5.5 sen today, with a market value of RM61.24 million.
Source: The Edge Markets