Mainboard-listed Thakral Corporation has divested its stake in Intrepid Group.
The divestment is part of Intrepid’s acquisition by Ascential plc, a UK-listed global leader in e-commerce organisation.
Intrepid Group is a leading provider of e-commerce operations solutions to enterprises in Southeast Asia (SEA).
The acquisition, which was completed on June 30, was made at an initial cash consideration of US$57 million ($79.2 million).
The total consideration is said to be calculated at a range of between US$100 million and US$197 million which includes deferred consideration payable over four years, contingent on meeting certain financial targets.
The maximum total consideration payable for Intrepid, in the event that very stretched targets are reached, is capped at US$250 million.
See also: Sembcorp issues $350 mil of guaranteed notes due 2036 at 3.65%
Of the total sum, Thakral will receive a share of the initial consideration of US$4 million, in line with its stake in Intrepid.
According to the group, the divestment has provided it with “healthy returns” in 2022.
It will also receive the relevant proportion of the deferred consideration annually until 2025 upon Intrepid meeting certain financial targets. This is in line with Thakral’s strategy of unlocking value from investments to maximise shareholder returns.
A non-disclosure agreement with Intrepid does not permit Thakral to provide additional financial information on the transaction.
In the FY2021 ended December, Thakral had recorded a fair value gain of $0.9 million from its investment in Intrepid.
Thakral group’s CEO and executive director, Inderbethal Singh Thakral says, “We took a minority stake in Intrepid about two years ago as part of our strategy to make selective investments in the digital and ecommerce space in Asia to create further value for our shareholders. We are pleased to have been part of Intrepid’s journey and support its tremendous growth during this time.”
“We expect that it will continue its success in offering ecommerce operations optimization, digital marketing and technology services to large enterprise customers, helping them improve sales and marketing performance on the major SEA ecommerce marketplaces such as Shopee,” he adds.
Shares in Thakral closed flat at 60 cents on June 30.
