Annica sells entire stake in GPE; non-executive director assisting in ongoing CAD probe

CATALIST-LISTED Annica Holdings on Thursday announced that it has entered into an agreement to sell its entire shareholding interest in GPE Power Systems to GPE's executive director Chong Shin Mun for S$2 million.

The disposal will enable Annica to focus on developing its new diversified business segments, including the renewable energy and recycling businesses, the company said.

Annica holds 350,000 ordinary shares in GPE, representing 70 per cent of the total number of issued shares, while Ms Chong holds the remaining 30 per cent.

Ms Chong is a substantial shareholder of Annica, and holds 6.66 per cent of its total issued share capital.

The disposal is to be completed no later than 14 business days after all the conditions set out in the conditional sale and purchase agreement are fulfilled. Following the disposal, Annica will cease to have any interest in GPE and GPE will cease to be a subsidiary of Annica.

In another announcement on Thursday, Annica said its non-independent and non-executive director Nicholas Jeyaraj s/o Narayanan was interviewed on July 17 by the Commercial Affairs Department (CAD) in an ongoing investigation. The investigation is related to a 2013 penny stock manipulation case.

Mr Narayanan intends to cooperate fully with the authorities. Annica's business and operations are not affected by the investigations, and the company will make further announcements as and when there are material developments.