Protasco Bhd's shares were suspended from trading until 10am today soon after the company announced the deal between wholly owned subsidiary Kumpulan Ikram Sdn Bhd (KISB) and Star Teenagers on July 19 to dispose 20 million of its entire ordinary shares in Ikram Education.

The disposal of 100% equity interest for a total cash consideration of RM30 million in Ikram Education Sdn Bhd by KISB was to Star Teenagers International Group Limited. The Purchaser has been changed from Star Teenagers International Group Limited to Star Teenagers International Sdn Bhd.

KISB is principally engaged in investment holding, engineering and consultancy services, hotel operations and property management.

While, Star Teenagers is principally engaged in educational support services for provisions of non-instructional services, activities of holding companies and business management consultancy services.

In a Bursa Malaysia filing today, Protasco said the proposed disposal is expected to result in a gain of about RM12.7 million.

"The proposed disposal of Ikram Education provides an opportunity for the company to unlock and monetise its investment in Ikram Education taking into consideration that its operations are not considered an essential segment of Protasco," the company said.

Ikram Education was seen to incur net losses since 2021 and the proposed disposal, it is expected to improve the cash flows, earnings and net assets of the group.

The net proceeds from the proposed disposal will be utilised as working capital for the group.

At midday, Protasco Bhd's share price fell -0.035 (9.72%) to 0.325 sen with a trading volume of 9,433,600.