How much did Johan Holdings gain from the Diners Club disposal?

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Johan Holdings Recorded RM210.85 Million Gain From Diners Club Disposal

Johan Holdings Bhd realised a gain of RM210.85 million from the sale of its entire stake in Diners Club (Singapore) Pte Ltd (DCS) and its subsidiary, DinersPay Pte Ltd (DPPL). The completion of these divestments to Ezy Net Pte Ltd on July 9, 2021, for a total consideration of RM313.98 million, marks a significant financial transaction for the company. This move is part of a broader strategic shift for Johan Holdings, which is also venturing into the glove manufacturing sector.
Disposal of Loss-Making Subsidiaries

The divestment of DCS and DPPL was a strategic decision driven by the substantial losses these entities had incurred over the preceding five financial years. The impact of the COVID-19 pandemic further exacerbated these financial difficulties. By exiting these operations, Johan Holdings aims to strengthen its financial position, with the company noting that it will be virtually debt-free and possess a robust balance sheet following the completion of a rights issue.
Entry into Glove Manufacturing

Johan Holdings has secured shareholder approval to enter the glove manufacturing, sales, and distribution business through its 60 per cent-owned subsidiary, Dynacare Sdn Bhd. This new venture involves a substantial investment of approximately RM624.10 million to establish a glove manufacturing plant in Lumut, Perak. The plant is situated on a 6.88-hectare industrial land parcel.
Significant Production Capacity Expected

The Dynacare plant is designed to be equipped with 42 double-former glove-dipping lines. Upon full commissioning, it is projected to achieve an annual production capacity of approximately 12 billion pieces of examination and surgical gloves. This scale of operation is anticipated to position the group among the top seven glove manufacturers in Malaysia, providing significant economies of scale and ensuring market competitiveness.
Phased Production Rollout

Commercial production at the Lumut facility is slated to commence in August 2021, with an initial six production lines expected to be fully operational by December 2021. The remaining 36 production lines are scheduled for phased commissioning throughout 2022 and into mid-2023. This staggered approach allows for a controlled ramp-up of operations and production capacity.

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How much did Johan Holdings gain from the Diners Club disposal?

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