DMX Technologies sells stake in Indonesian company for US$7.5m

Singapore

A UNIT of solutions provider DMX Technologies has reached a conditional agreement to dispose of its 60 per cent stake in PT Packet Systems Indonesia (PSI) for US$7.5 million.

Part of the proceeds will be used to fund an extended scope audit on the company, it said in a release on Tuesday night.

DMX Technologies said it had entered a conditional sale-and-purchase agreement on that same day with Logicalis Singapore Pte Ltd and Indonesia's PT Metrodata Electronics TBK.

About 150,000 ordinary shares, representing 60 per cent of the entire issued and paid-up capital of PSI, are involved in the transaction.

Founded in Indonesia in 2004, DMX Technologies acquired the stake in 2006. The registered capital of PSI was almost 2.25 billion rupiah (S$234,811) then.

Some US$6.375 million of the consideration sum should be paid in cash upon completion of the disposal.

Another US$1.125 million should be paid in cash to the escrow agent.

DMX Technologies said the sum raised from this disposal is meant to pay the relevant fees for the completion of extended scope audits.

These audits were proposed by external auditor PricewaterhouseCoopers in Singapore in respect of its financial year 2014 financial statements, and also those for FY2015 and FY2016.

These expanded audits come after the board of DMX Technologies suspended earlier ones due to the lack of funding, according to an announcement it made in May last year.

The earlier ones were called for in relation to the removal of two former directors after they were suspected of running afoul of Hong Kong law.