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IEV Holdings corrects announcement about disposal of stake in IEV Gas

CATALIST-LISTED IEV Holdings on Thursday issued a clarification and corrigendum regarding its proposed disposal of its entire 95 per cent stake in loss-making, indirectly-owned subsidiary PT IEV Gas.

In its Thursday filing, IEV Holdings said that its unit IEV Energy Sdn Bhd had on Oct 15 entered into a conditional sale and purchase agreement for the proposed disposal of 630,910 ordinary shares representing 95 per cent of the total issued and paid-up share capital of PT IEV Gas, for a total consideration of 960 million rupiah (S$87,000).

This corrects its Tuesday announcement, where the total consideration was stated as 7.48 billion rupiah.

IEV Energy has agreed to dispose of all its sale shares to the purchaser, PT Digas Energi Semesta, for a cash consideration of 960 million rupiah.

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This net price was arrived at based on arm's length negotiations and on a willing-buyer and willing-seller basis, taking into consideration the liquidation value of the assets of IEV Gas, based on the valuation study commissioned by the company, amounting to about 16.1 billion rupiah, the contingent liabilities of IEV Gas in relation to a VAT tax dispute with the tax authorities, amounting to 11.3 billion rupiah, and potential employment severance liabilities in the event employees of IEV Gas would have to be retrenched. This last figure, not given on Tuesday, was estimated at 6.52 billion rupiah in Thursday's announcement.

IEV added that the net price will be paid in cash by the purchaser to IEV Energy but held in trust by a law firm within 30 business days from the signing of the agreement, and will only be released to IEV Energy upon completion of the proposed deal.