Formis Resources Bhd (FRB) announced it is divesting its 90% subsidiary Diversified Gateway Bhd (DGB) to ISS Consulting Solutions Bhd (ISS) for RM99 million, under a corporate exercise that will give FRB control of ISS, a company listed on the Ace Market of Bursa Securities.

The proposed sale consideration for DGB will be satisfied via the issuance of 990 million new ISS shares of 10 sen each to Formis Holdings Berhad or its nominee, resulting in a reverse takeover of ISS by FRB whereby FRB will hold 73.02% stake in the enlarged ISS. The share sale agreement for DGB was concluded at a signing ceremony held on 12 October 2009.

FRB is also proposing to distribute 185.9 million or 13.7% of the new ISS shares to its shareholders on the basis of one ISS share for every one FRB share held, reducing FRB’s stake in ISS to 59.3%.  FRB Group expects to realize a gain on disposal of approximately RM58.19 million (before consolidating the ISS Group with DGB) upon completion of the disposal.

(Photo-From Left to Right : Mr Harald Weinbrecht-CEO of ISS, Mr Jeremy Loo - Chairman of ISS, Dato’ Mah - CEO of FRB, Mr Lau Chi Chiang –MD of DGB, En Ahamad Khalid – Director of FRB, Tan Sri Dato’ Seri Megat Najmuddin – Chairman of FRB and Mr Robin Lim – ED of DGB)