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Digital security firm Disa disposes stake in Equation Energy
DIGITAL security firm Disa Limited on Thursday said it has agreed to dispose its entire stake of 700,000 shares in Equation Energy (EEPL) for an aggregate cash consideration of S$203,100.
The group's shareholding interest in EEPL will be transferred to George Kho, an acquaintance of Disa chief executive officer and managing director Chng Weng Wah. Disa said none of its directors or substantial shareholders have any connection, including business relationships, with Mr Kho.
Upon the completion of the proposed disposal, EEPL will cease to be a subsidiary of Disa. The group said this move is intended to streamline its businesses for better utilisation of available resources by its subsidiary Disa Digital Safety.
Disa's core business has been in technology since it diversified into the sector in 2010. It noted that the disposal of EEPL will improve its future operational performance and financial prospects.
Incoporated in 2009, the Singapore-registered EEPL is primarily involved in providing sustainable energy-management solutions to the building industry here, said Disa.
As at Thursday, Disa held 70 per cent of the equity interest in EEPL. The total issued and paid-up share capital of EEPL is S$1,000,000 comprising 1,000,000 ordinary shares. EEPL’s book value and net tangible asset value as at March 31 were both at S$154,854.
Disa said the purchase consideration of S$203,100 was arrived at after an "arm’s-length negotiation" between Mr Kho and the group, and on a willing-buyer/willing-seller basis.
This was after taking into consideration the aggregate net assets attributable to EEPL shareholders of approximately S$154,854 as at March 31, and the nature and future prospect of EEPL’s business, said Disa.
Shares of Disa closed flat at 0.2 Singapore cents on Thursday.