Nera Telecommunications has proposed to dispose its property at 109 Defu Lane 10 for $6.3 million.
The company issued an option to purchase to De Tian Holdings on April 7, which expires at 4pm on April 22.
“The property will be sold with vacant possession on an ‘as is where is’ basis, and the purchaser having inspected the property shall be deemed to satisfied itself as to the present state and condition,” the company states in an April 7 regulatory filing.
The sale of the property is subject to the purchaser’s solicitors receiving satisfactory replies to their legal requisitions from the relevant governmental authorities.
NeraTel would also need to obtain approval from the Jurong Town Corporation (JTC) for the purchaser’s proposed use of the property as well as the sale.
If the company does not get JTC’s approval within six months of the date of the Option to Purchase or any other date that may be agreed with De Tian Holdings, it can extend the date by another eight weeks.
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Under the option, 1% of the purchase price – or the option money – of $63,000, along with the goods and services tax thereon has been paid by the purchaser.
The second payment of 5$252,000 – which amounts to 5% of the purchase price less the option money – together with the goods and services tax thereon is to be paid by De Tian Holdings upon its of the Option of to purchase.
The third payment, which is the remaining amount of the purchase price along with the goods and services tax thereon, is to be paid by the purchaser on the date of completion under the agreement.
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NeraTel believes that the proposed disposal will help it to unlock the value of the property for no book value is currently ascribed to it.
The book value, net tangible value and net profits attributable to the property stood at nil on Dec 31 2021, while the amount of gain on such a disposal is $6.2 million after deducting related expenses.
NeraTel intends to utilize the sales proceeds from the proposed disposal for working capital in operating its businesses.
Shares in NeraTel closed flat at 9.3 cents on April 7, before the announcement.
Cover image: NeraTel
