Revez Corporation has disposed all of its shares in its 55%-owned subsidiary, AIAC, for a cash consideration of $200,000.
On July 1, the company entered into a share transfer agreement (STA) with Tan Keng Siong.
Tan is one of the minority shareholders of AIAC, with a 35% stake.
AIAC was established in February 2020 as a joint venture (JV) between Revez, Tan and a third shareholder Lim Fung Kuen. The JV was incorporated on Feb 19, 2020 with a total issued share capital of $1.46 million for 1.46 million shares.
The principal activities of AIAC are to provide engineering consultancy and industrial automation solutions.
Based on AIAC’s financial statements for the FY2021 ended Dec 31, 2021, its book value and net tangible asset (NTA) were $796,758. That year, AIAC posted a net loss of $387,292. No valuation was conducted on AIAC or the shares sold to Tan. The company was said to have made losses of $290,850 for the FY2020; its business had been affected by the Covid-19 pandemic.
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The amount took into consideration AIAC’s latest aggregate net asset value based on the unaudited management accounts and the nature and future prospects of AIAC’s business.
Tan will first pay Revez a down payment sum of $100,000. Subsequent payments will be paid on a monthly basis spread across 24 months equally. The first monthly payment will begin on Sept 1. The shares will be transferred to Tan by July 8 or the earliest date possible. The sale proceeds will be used for Revez’s working capital.
According to Revez, the proposed disposal is part of its plans to streamline its structure and improve its future operational performance and financial prospects.
Shares in Revez closed 1 cent higher or 10.53% up at 10.5 cents on July 1.
