BRC Asia to dispose of stake in Maldives hotel operator for US$14 million
Mia Pei
BRC Asia has accepted a binding offer to sell its shareholding interest in Pristine Islands Investment, an investment holding company that engages in hotel and resort operations and airport management in the Maldives.
Under the binding offer, the purchaser E Street Capital will pay BRC Asia up to US$14 million, comprising US$12.7 million for a sale loan and US$1.3 million for the sale shares in Pristine, said BRC Asia on Tuesday (Jan 2).
As at the date of this announcement, the total paid-up capital of Pristine is around US$10 million. The 1.7 million ordinary shares to be disposed by BRC Asia represent 17 per cent of the total issued share capital.
The remaining Pristine shares are held by Keong Hong Construction, Sansui Holding and L3 Development, with shareholding interests of 49 per cent, 17 per cent and 17 per cent, respectively, in Pristine, according to the bourse filing.
BRC Asia said that the shareholding disposal “will be in the best interests of the company in view of Pristine’s historical performance and financial position”.
“Moreover, Pristine’s business is unrelated to the group’s core business and, in any case, the company has little to no control as a 17 per cent shareholder.”
The steel prefabrication solutions provider also noted that the disposal will allow the company to exit its investment related to the potential disputes among Pristine’s shareholders, as well as its management, regarding the parties’ obligations.
Following the completion of the disposal, net cash proceeds, after deducting expenses, of about S$18.5 million will be used for working capital purposes, the company said.
BRC Asia’s shares ended 0.6 per cent or S$0.01 higher at S$1.79 on Friday.
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