KINIBIZ In case you missed it, on Dec 21, 2015 loss-making Utusan Melayu (M) Berhad announced what may seem a strong candidate as any for deal of the year - it is selling a 20 percent stake in a private company for what is essentially 47,900 percent return on investment after just eight months.

By any measure this stunning gain is a great boon to Utusan, which has been staring at nine consecutive quarters in the red. For the latest concluded quarter ended Sept 30, 2015, the company recorded a pre-tax loss of RM7.85 million as revenue slipped 18 percent year-on-year to RM61 million.

According to the terms of the deal announced to Bursa Malaysia, Utusan will get RM5 million upfront after the share sale agreement is inked with the balance to be paid by the end of the second quarter of 2016. Looks like we can expect a bumper second quarter for Utusan, eh?

But hang on, its shareholders - and the rest of Bursa Malaysia citizens, eager to pick up great investment tips - may say. How did Utusan accomplish this stunning feat and what company did the stake pertain to? That’s where things get a little weird.

The company is called Maqamad Sdn Bhd, which according to public records is involved in property development and general trading. In a regulatory filing, Utusan said its original cost of investment for the 20 percent was RM100,000 incurred in April 2015 and it is now selling that stake to the majority shareholder of Maqamad for a whopping RM48 million.

That buyer is MHA59 Sdn Bhd, which is 90 percent owned by one Mohd Hassan Bin Abu who is also one of only two directors in Maqamad. MHA59 Sdn Bhd is buying over this 20 percent to “assume full control of Maqamad”, said Utusan.

For the full story go to KINIBIZ .

This article was written by Khairie Hisyam.