Velesto's Sale of Workover Services Unit Looks Positive -- Market Talk
Dow Jones
Dec 30, 2025
0209 GMT - Velesto Energy's plan to sell its unit, Velesto Workover, to Enviros Survey & Consultancy for 16.5 million ringgit looks strategically sensible and operationally positive, TA Securities analyst Lee Yun Leon says in a note. The disposal of the noncore, unprofitable unit removes an earnings drag while allowing management to reallocate resources toward higher-return activities, he says. Proceeds will be used mainly for working capital, and the transaction is expected to generate a small gain of about 0.4 million ringgit, he adds. TA Securities maintains a hold rating on Velesto and its target price of MYR0.26. Shares are 1.8% higher at MYR0.28. (yingxian.wong@wsj.com)
(END) Dow Jones Newswires
December 29, 2025 21:09 ET (02:09 GMT)
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