KUALA LUMPUR: Yong Tai Bhd, which is mulling to sell its fabric manufacturing and dyeing business in order to focus on tourism-related property development, has a new biggest shareholder -- and it is a fabric and clothing trader.

Hong Kong-listed Co-Prosperity Holdings Ltd has taken over the top investor spot from Sino Haijing Holdings Ltd’s wholly-owned subsidiary Impression Culture Asia Ltd (ICAL).

ICAL has sold its entire 34.4% stake in Yong Tai -- which is developing Impression City in Melaka -- over the last two months for RM165mil, or RM1.10 per share.

In a filing with Bursa Malaysia, Yong Tai said ICAL inked a conditional agreement on Tuesday last week to dispose a 24.6% stake in Yong Tai to Co-Prosperity Holdings Ltd’s unit, Full Winning Developments Ltd (FWDL).

The 107 million shares were sold for RM117.7mil, the latest in a series of share disposals.

Based on Sino Haijing’s disclosure to the Stock Exchange of Hong Kong (HKEx), ICAL had earlier this year sold a 2.9% stake to Yong Tai executive director Datuk Seri Lee Ee Hoe, a 2.8% stake to Yong Tai chief executive officer Datuk Wira Boo Kuang Loon, a 2.3% stake to Chan Swee Ying and a 1.8% stake to MaxWealth Investment Management Ltd.

Following last week’s disposal to FWDL, the group no longer holds any Yong Tai ordinary share, However, it still owns 200 million irredeemable convertible preference shares in the company.

Sino Haijing/ICAL had obtained its 34.4% equity interest in Yong Tai through a special issue in November last year at 80 sen a share, or RM120mil in total.

At the time, the Sino Haijing group had viewed its equity stake as a long-term and strategic investment that would enable the group to generate sustainable and attractive returns for its shareholders.

“However, the group was approached by the purchasers who have provided very attractive offers at the price of RM1.10 for each Yong Tai share. Therefore, the board considers that the disposal provides the company with a good opportunity to realise the investment and enhance the cash flow of the group,” Sino Haijing told the HKEx in a filing.

Sino Haijing said the group expected to realise a gain of about RM44.75mil from the share disposal.

Yong Tai shares closed unchanged at RM1.53 on Monday, with 1.16 million shares traded.

Yong Tai, whose securities were last month reclassified from trading/services sector to properties sector, still operates a textile and garment business via wholly-owned subsidiary Syarikat Koon Fuat Industries Sdn Bhd.