Asia Wiring Systems sells stake in associated company

DECLOUT Limited's indirect subsidiary, Asia Wiring Systems (AWS), has entered into an agreement with Poh Teck Boon to sell the entire 40 per cent of issued and paid-up capital of AWS's associated company, AWS Distribution Phils Corp, for a consideration of S$2 million to Poh Teck Boon, an existing employee and director of certain AWS Group entities.

In a Singapore Exchange filing, the company said it considers the disposal as an opportunity for the group to realise some returns from the investment, particularly as the group does not have control over the operational and financial matters of AWS Distribution Phils Corp and has not received any dividends since the acquisition.

The consideration sum takes into account the latest book value of AWS's investment in AWS Distribution Phils Corp of approximately S$2 million as at Dec 31, 2016. AWS Distribution Phils Corp's unaudited net tangible asset value as at Dec 31, 2016, is approximately 303 million pesos (equivalent to about S$9.09 million).

As at Dec 31, 2016, AWS Distribution Phils Corp has an issued and paid-up share capital of three million pesos comprising three million ordinary shares.

The disposal is not expected to have any material impact on the consolidated NTA and earnings per share of the group for the current financial year ending Dec 31, 2017.