Libra finds buyer for one unit, while another stays mired in legal trouble

LIBRA Group on Thursday said it has entered into a legally-binding memorandum of understanding with Cascade Metals, a Singapore-incorporated investment holding company, for the disposal of the company's 100-per-cent stake in Libra Engineering for S$100,000 in cash.

The Catalist-listed group is currently in talks with its sponsor regarding the classification of the proposed disposal under the Catalist Rules. 

Libra said the buyer is an independent third party and its directors and sole shareholder are not related to any of the directors and controlling shareholders of the company or any of its associates.

Libra Engineering manufactures air-conditioning and mechanical ventilation ducts. It has several subsidiaries incorporated in Singapore and Malaysia, none of which are in operation.

Libra said it is currently undergoing a restructuring phase and is in the midst of rationalising its operations.

"The target, as at the date of this announcement, had wound down most of its operations and currently has no more substantial operations. As such, the proposed disposal would allow the group to dispose of non-operational assets for cash and allow it to streamline its corporate structure."

Both sides will negotiate and try to agree on the terms and conditions of the sale-and-purchase agreement by Jan 31, 2020.

Meanwhile, it seems like trouble has not ended for Libra's other unit, Libra Engineering & Manufacturing.

After the latter's supplier Yick Hoe Steel Industries filed a winding-up petition in the High Court of Malaya last month, Libra Engineering & Manufacturing has now been served with a writ of summons and a statement of claim filed by WMS Industrial Gas & Equipment in Malaysia courts.

The matter is fixed for a case management before Puan Norhidayah Binti Abd Manaf on Jan 21, 2020.

Libra said that it is in the process of obtaining an English translation of the writ of summons and the statement of claim which are drafted in Malay.

"The company will seek Malaysia legal counsel's advice on the next steps which the defendant should take given the current circumstances surrounding the defendant, including but not limited to the winding-up petition made against the defendant."

Libra said it will make further announcements on material updates as they occur.