Addvalue: Unit's spin-off still in preliminary stages; no explanation for trading spike

Addvalue Technologies is not aware of any explanation for a spike in trading activity on Tuesday, but noted previously announced plans to spin off a subsidiary, the mobile satellite communications company said in reply to regulatory queries.

The stock was the most actively traded counter on the Singapore Exchange on Tuesday, gaining 4.7 per cent, or 0.2 Singapore cent, to 4.5 Singapore cents before trading was halted at 4.46pm pending an announcement.

The trading halt was preceded by a trading query at 4.29pm from SGX, which asked the company if it was aware of any explanation for the trading activity and to confirm its compliance with disclosure rules.

In its reply to SGX, the company highlighted its plans to spin off Addvalue Solutions, its inter-satellite data relay system airtime business, for a future Catalist listing. Addvalue said it remains keen on, and is working towards, the spin-off and listing of that unit, although the process remains at a "preliminary stage".

Addvalue will resume trading on Wednesday.