Sim Leisure Group has acquired the remaining 49% stake in its 51%-owned subsidiary, The Cool Melon, for $1.
The remaining interest was previously held by Ticket2U.
The acquisition was said to enable the group to explore and accelerate the development of the business with “other technology experts” after the delay and effect of the Covid-19 pandemic.
The purchase consideration was arrived at on a willing buyer-willing seller basis, after taking into consideration the deficit in the shareholders’ equity position of The Cool Melon and its wholly-owned subsidiary, The Cool Melon Sdn. Bhd. as at Nov 30.
Based on latest unaudited management accounts as at Nov 30, The Cool Melon and its subsidiary recorded a net loss of RM21,404 ($6,520.96). It also has a net liabilities or deficit in the shareholders’ equity of RM28,019 due principally to the cost of incorporation and corporate expenses.
Following the purchase, The Cool Melon is now a subsidiary of Sim Leisure Group.
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The Cool Melon was incorporated on Sept 6, 2021, with an issued and paid-up share capital of $10. Its principal business was to carry out the business in the development of e-commerce application and provide consultation services for information technology. Its subsidiary, The Cool Melon Sdn. Bhd., is meant to carry out the business in the development of new attractions ticketing digitalisation in Malaysia, as well as provide consultation services for information technology.
Both The Cool Melon and its subsidiary have yet to commence operations.
Shares in Sim Leisure closed flat at 26 cents on Dec 27.
