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DeClout sells 17.2% stake in Procurri to 2 buyers, paring stake to 29.6%

CATALIST-listed DeClout has sold 48 million shares in Mainboard-listed Procurri Corp at S$0.32 per share to two independent third parties, raising net proceeds of S$15.2 million, it said on Friday.

The sale was done through married deals and the sale price represents a premium of 14.4 per cent to the volume-weighted average price of Procurri shares of S$0.2797 traded on Jan 3, that being the last market day on which Procurri shares were traded prior to the sale.

DeClout did not identify the buyers.

DeClout continues to hold just over 84.3 million Procurri shares, comprising 29.62 per cent of Procurri's issued share capital, down from 46.83 per cent previously. The company will hence cease to consolidate the results of Procurri going forward, accounting for the enterprise hardware supplier's results using the equity method instead.

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DeClout said it intends to use the net sale proceeds to repay its external borrowings.

As at Sep 30 last year, the sale shares had a book value of S$7.5 million. The sale will result in an accounting gain on disposal of approximately S$3.8 million and a revaluation gain of approximately S$7 million (assuming the value of each Procurri share is S$0.32) on the remaining Procurri shares held by DeClout.

Procurri shares rose one Singapore cent or 3.64 per cent to S$0.285 on Friday.

DeClout shares last traded at S$0.11 before trading was halted pending the announcement.