Intraco Limited has disposed of its 40% equity interest in Tat Hong Intraco to Tat Hong Holdings for a total consideration of US$838,000 ($1.2 million) on Sept 21 via a sale and purchase of shares agreement (SPA).
The stake amounts to two million ordinary shares in Tat Hong Intraco.
Tat Hong Intraco is a joint venture company between Intraco and Tat Hong Holdings, where they both hold an equal stake of 40%. An independent third party has the remaining 20% stake. Tat Hong Intraco was incorporated in Singapore in August 2013 with an issued and paid-up share capital of US$5 million.
Within six months upon the completion of the transfer of shares, Intraco will also dispose of its one share held in the capital of Tat Hong Intraco Heavy Equipment Company Limited (THIHE) to Tat Hong Holdings or its nominee for a consideration of US$1.00 (being the par value of THIHE’s share).
THIHE was incorporated in Myanmar in February 2014 and has an issued and paid-up share capital of US$3.2 million. THIHE is a 99.99% subsidiary of Tat Hong Intraco.
According to the release, the consideration took into account the adjusted consolidated net asset value (NAV) of Tat Hong Intraco as at Aug 31. The NAV includes bank balances in the Myanmar kyat.
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The final consideration may be adjusted based on the exchange rate between the kyat and the US dollar (USD) on the settlement date, which is on July 31, 2023.
As at Sept 21, Tat Hong Holdings is an associate of Intraco’s controlling shareholders, namely TH Investments Pte Ltd, Tat Hong Investments Pte Ltd, Chwee Cheng & Sons Pte Ltd, Ng San Tiong, Ng Sun Ho, Ng San Wee and Ng Sun Giam.
As such, they are deemed as interested persons under the listing rules.
Based on Intraco’s latest audited financial statements for the FY2021 ended Dec 31, 2021, the consideration represents some 2.2% of the company’s latest audited consolidated net tangible asset (NTA) as at Dec 31, 2021.
Shares in Intraco closed flat at 30.5 cents on Sept 21.
