Lasseters to dispose of joint venture shares for RM4.9 million

CATALYST-LISTED Lasseters International Holdings has entered into a sale and purchase agreement to divest its entire shares of Super Ace Resources (SAR), a joint venture between Lasseters and Bursa-listed Paramount Corporation, on Monday (Nov 1).

The shareholdings, consisting of 550,000 ordinary shares and over 6.9 million preference shares, represent about 29 per cent of SAR's equity. They will be sold to Paramount Corporation at an aggregate purchase consideration of RM4.9 million (S$1.6 million) in cash payable.

The disposal is subject to the fulfilment or waiver of conditions precedent within one month of the purchase agreement. It will then be completed in five business days from the fulfilment of the requirements.

Based on the latest announced results for the year ended June 30, 2021, the book value and the net asset value of the shares to be sold was A$2.2 million (S$2.2 million). At the purchase consideration price, this amounts to a loss on disposal of approximately A$600,000 before any disposal expenses, said Lasseters in a bourse filing.

"The consideration was arrived on a willing-buyer willing-seller basis, taking into account the current market condition of the hospitality industry, the unaudited accounts of SAR as at Sep 30, 2021, and the net asset value attributable to the sale shares," Lasseters said.

The integrated resort operator entered into a joint venture (JV) with Paramount to jointly develop, own and operate a hotel in Glenmarie, Shah Alam, Malaysia in 2016. The JV was sealed through Lasseters' wholly owned subsidiaries, Lasseters Properties (LPSB) and Lasseters Management (LMSB).

On Oct 20, Lasseters concluded the disposal of its Australian assets for A$105 million. Since then, shares of Lasseters were suspended from trading.