CATALIST-LISTED Zico Holdings 40W : 40W 0% announced on Friday (Dec 17) that its wholly owned subsidiary will be disposing of 49 per cent stake in Zico Trust for RM9.6 million (S$3.1 million).

The subsidiary, Zico Malaysia, has entered into a conditional sale and purchase agreement with Riau Capital, a family-owned investment company based in Singapore.

Zico Trust is an indirect subsidiary of the company and has been operating in the Labuan International Business and Financial Centre since 2005.

The move comes as the company looks to focus on the growing wealth management industry in Asia, said Zico in a press statement.

Zico added that Riau Capital's established network with the likes of wealth management companies in Europe, can help boost the growth of Zico Trust and benefit the company's shareholders and stakeholders.

Completion of the deal is subject to and conditional upon fulfilling certain conditions precedent, including but not limited to written approval from the the Labuan Financial Services Authority.

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Upon the disposal, the company will hold a 51 per cent equity interest in Zico Trust and Riau Capital will hold the remaining 49 per cent.

Shares of Zico ended Friday flat at S$0.078.