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EUCON Holding Limited said that it has agreed to acquire a China-based media company while disposing of its existing business as part of its diversification strategy.
The group said in a regulatory filing on Sunday that it has acquired from Zhan Yang the entire stake in BJ Vast Universe Culture Communication Co Ltd for 2.4 million yuan (S$496,800).
The acquisition is subject to approval of the Singapore Exchange (SGX) and the SGX not imposing conditions that are unacceptable to the group and the vendor on or before April 30.
Eucon is also selling its entire stake in Eucon Investment Holding Pte Ltd to former group chairman and CEO Wen Yao-Long for a nominal S$1, considering the subsidiary's net liability position of S$5.2 million as at Oct 31, it said in a separate filing on Sunday.
Following an earlier corporate restructuring, Eucon Investment Holding owns all the group's subsidiaries that are in the business of mechanical drilling, laser drilling, routing and manufacturing of integrated printed circuit boards.
"The board believes that the proposed disposal is in the best interests of the group as it enables the group to focus all its resources to diversify into the media business," Eucon said.
The group had in September obtained shareholders' approval in an extraordinary general meeting for its proposed diversification strategy of entering the media business.
Set up in 2010, BJ Vast Universe Culture Communication specialises in advertising, marketing and public relations in China.