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Infinio Group unit to acquire majority stake in Oxley Holdings subsidiary for S$10.4m
CATALIST-LISTED Infinio Group announced on Friday that its wholly owned unit is intending to buy a majority stake in a subsidiary of Oxley Holdings.
In a Singapore Exchange filing on Friday, Infinio said that Rich Batam and Oxley International Holdings, a wholly owned unit of Oxley Holdings, have entered into a conditional sale and purchase agreement on March 16.
The proposed acquisition will see Rich Batam buying 80 per cent of the entire issued share capital of Oxley Batam for S$10.4 million.
Oxley Batam is a wholly owned subsidiary of Oxley International Holdings.
The purchase will be satisfied wholly by cash, through a combination of equity fund-raising and bank borrowings.
If the acquisition, additional share issuances and other proposed transactions had been completed by March 31, 2017, net asset value as at this date would have been S$33.7 million.
Infinio said that the proposed acquisition will allow the company to "undertake a viable property development business" and build towards a long-term, sustainable property business.
"The proposed acquisition will also enable the company to diversify its revenue streams and to substantially increase its asset base and the scale of its business operations."
Infinio closed unchanged at S$0.008 on Friday.