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Intraco disposes 41.27% stake in Dynamic Colours for S$19.5m
SINGAPORE-LISTED trading firm Intraco announced on Tuesday that it has disposed its 41.27 per cent stake in resin-compounding company Dynamic Colours for approximately S$19.5 million.
The cash for Intraco's holdings of around 86.6 million shares will be paid within seven business days of the unconditional offer date of June 22. Upon the disposal, Dynamic Colours ceases to be an associated company of Intraco.
Dynamic Colours' executive chairman Goh Seok Eng and her husband, chief executive officer Yeo Hock Leng, had made a voluntary conditional offer for the mainboard-listed company in a bid to delist it. They offered S$0.225 in cash for each Dynamic Colours share, in a deal that values the company at S$47.2 million.
Intraco said in its regulatory filing that the disposal is in line with the company's investment objective to reshape its portfolio with businesses in high growth areas. It will also offer the company stronger financial flexibility, and enable it to explore new investment opportunities.
Nicholas Yoong, chief executive officer of Intraco, said: “The disposal will offer Intraco the financial resources to venture into new value-accretive areas. In doing so, we will be prudent and will cautiously examine market opportunities in light of the uncertain environment.”
Intraco will issue a circular to its shareholders to convene an extraordinary general meeting to seek shareholders’ ratification for the disposal.