KPS monetises stake in Kaiserkorp with divestment worth RM265.48m

PETALING JAYA: Kumpulan Perangsang Selangor Bhd’s (KPS) wholly owned subsidiary, Bold Approach Sdn Bhd, has entered into a conditional share sale agreement (SSA) with AI Dream (HK) Ltd to divest 50% equity interest in Kaiserkorp Corporation Sdn Bhd.

KPS is expected to realise about RM265.48 million from the divestment.

KPS acquired 60% interest in Kaiserkorp for RM116.66 million in 2016. Kaiserkorp’s subsidiary owns the “King Koil” mattress brand and related intellectual properties (Kaiserkorp Group). The acquisition marked KPS’s first foray into the global business sphere with opportunities to penetrate high-growth international markets.

KPS managing director/group CEO Ahmad Fariz Hassan said KPS has built a healthy relationship with Kaiserkorp Group in setting the business strategy to push for growth, encouraging collaboration between both leaderships in capitalising business opportunities such as market and customer base expansion.

Over the years, Kaiserkorp Group has strengthened its foothold in the bedding industry, with presence in almost 80 countries through 24 international licensees, and achieved impressive revenue and profit compound annual growth rates of 30% and 19%, respectively, between 2018 and 2022.

“The decision to monetise our investment in Kaiserkorp follows a comprehensive review of the group’s business, demonstrating its active approach to investment management. It is a strategic move with a few aims in mind, which are streamlining our core business and serving as a catalyst for debt reduction, with the generated proceeds directed towards optimising our balance sheet. This financial manoeuvre is designed to enhance the group’s fiscal stability and resilience,” he added

Ahmad Fariz said with the new ownership having vast business exposure and deep sector experience, there would be bigger growth plans for Kaiserkorp Group, helping it thrive stronger for the long term on a higher growth trajectory, while creating lasting value for its stakeholders.

“Retaining a 10% stake would provide KPS Bhd with potential financial upside to its investment whilst maintaining a connection to future growth, potentially yielding additional returns over time,” he added.

KPS’s board has allocated RM24.2 million of the proceeds for the issuance of special dividends. The entitlement and payment dates of the dividends will be announced later, following the conclusion of the proposed divestment, which is conditional upon approval of KPS’s shareholders at an extraordinary general meeting. Subject to the completion of the proposed divestment, its shareholders will be entitled to receive 4.5 sen per ordinary share as appreciation for their steadfast support of KPS’s strategic initiatives.