Jilin Provincial Expressway Group Co.,Ltd (JPEGCL) entered into a share sale agreement to acquire remaining 85% stake in Jilin Province Maxcourt Hotel Limited (JPMHL) from Talam Transform Berhad (KLSE:TALAMT) (TTB) for CNY 68.9 million on November 17, 2021. The total consideration of CNY 68.9 million will be paid in cash for target shares and creditor's rights. The JPEGCL will assume all of JPMHL's debts and liabilities.

Upon completion, JPMHL will cease to be a subsidiary of Malim Enterprise and JPEGCL will own 100% interest in it. The transaction is subject to approval of Board of Directors of JPEGCL, by the Jilin Provincial Department of Transportation and to be put on record by the state-owned Assets Supervision and Administration Commission of the People's Government of Jilin province and conclusion of liquidation proceedings of JPMHL. The disposal is not subject to the approval of the shareholders of TTB and is expected to complete by the 4th Quarter of financial year ending March 31, 2022.

The net proceeds from the disposal will be utilized as working capital for the Group's property development projects for the financial year ending March 31, 2023. The disposal will not have any effect on the issued and paid-up share capital of TTB and the shareholding of its substantial shareholders. However, it will give rise to an estimated loss on disposal per ordinary share, the net assets of TTB will also reduce per ordinary share and the gearing ratio will improve 61%.