JTRUST Co on Tuesday said it would sell all its stocks in LCD Global Investments by accepting a voluntary conditional cash offer from AF Global.
Tokyo-listed JTrust Co owns 29.5 per cent of LCD through its subsidiary JTrust Asia. AF Global is a joint venture between Aspial and Fragrance which owns almost the same number of LCD stocks as JTrust.
The JTrust group stated three reasons for accepting the offer:
1) because the instability of LCD management might affect LCD's financial results, stakeholders and shareholders;
2) because the offer conditions are favourable; and
3) because management resources (such as the consideration) can be reallocated for new merger and acquisitions.
It said that it would probably post about one billion yen (S$11.5 million) of gain on sales of investment securities.
Shares of LCD closed a cent lower, or down 2.9 per cent, at S$0.34 on the stock market.