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Intraco unit acquires another 20% of KA Group for S$4.8m
INTRACO International Pte Ltd (IIPL), a unit of Mainboard-listed Intraco, has acquired an additional 20 per cent stake in KA Group Holdings for S$4.8 million in cash, due to third parties exercising put options that IIPL had previously granted them.
IIPL now owns 90 per cent of KA Group, having acquired a 70 per cent stake back in 2014. KA Group is involved in building construction and fireproofing services. IIPL had granted two individuals, Soh Yong Poon and Soh Ying Sin, put options for their 30 per cent stake in KA Group.
On Sept 27, IIPL received notice from both individuals that they planned to exercise the puts, with Ms Soh Ying Sin retaining a 10 per cent stake - comprising one share - in KA Group.
Based on prior terms of the put agreement, the exercise price for the puts was set at S$2.4 million per share. This is based on adding up the original price for each share, being S$2.38 million, and the S$10,605 rise in net tangible asset value per share of KA Group from end-2013 to Sept 15 this year.
The completion of the put exercise is not expected to have any impact on Intraco's financials for FY2019 ended December.
Shares of Intraco closed flat at S$0.22 on Friday.