Thakral Corporation AWI has been granted an extension of time to convene an extraordinary general meeting (EGM) for shareholders to ratify the internal restructuring of its wholly-owned subsidiary Thakral Capital Holdings (TCH).
Before Oct 3, Thakral was a 75% owner of TCH, with the remaining 25% split among other shareholders.
Thakral announced on Aug 10 that it had entered into a demerger deed to transfer the existing shareholders’ 25% of shareholding interest in TCH to the subsidiary for a proposed internal restructuring exercise.
The structure of TCH was implemented pursuant to a joint venture arrangement entered into in 2015 between Thakral and several Australian executives who were, until early July 2023, responsible for the management and day-to-day operations of the group’s investment business in Australia.
However, given Thakral’s current focus on the GemLife brand and with limited activity in the Australian residential and commercial real estate sectors, it was decided that the Australian executives would separate from the group.
This included their resignation from TCH’s wholly-owned subsidiary Thakral Capital Australia (TCAPA), selling their equity interests back to TCH and agreeing to the cancellation of their options granted under the TCH employee share option scheme for an option cancellation fee of A$18.75 million ($16.53 million).
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In addition, the Australian executives would also be paid their contractual bonus entitlements amounting to A$1.997 million, following which their entitlements to any contractual bonus would cease.
Based on the group’s latest audited financial statements for FY2022, the book value and the net tangible assets (NTA) value of the 25% TCH shareholding interest was valued at A$29.2 million.
Thakral announced on Oct 3 that the transaction had been completed and that TCH had become its wholly-owned subsidiary, with shareholders to ratify the restructuring at an EGM.
With the time extension, the EGM will now be convened no later than Dec 29. Thakral’s earlier deadline had been Nov 7.
Shares in Thakral closed 0.5 cents or 0.85% up at 59.5 cents on Nov 16.
