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OLS to acquire 51 per cent stake in Advance Capital Partners for S$1.5m
OLS Enterprise Ltd said on Monday that it has entered into a share purchase agreement with Pine Partners Pte Ltd to acquire a 51 per cent stake in Advance Capital Partners Asset Management Pte Ltd for S$1.5 million.
In a Singapore Exchange (SGX) filing, OLS said it does not expect any changes to the directors of Advance Capital Partners - Tan Choon Wee and Philip Wong Yee Teng - on completion of the deal.
Based on the unaudited financial statements as at May 31, 2017, the net book value of Advance Capital Partners is about S$500,000. Its net loss was about S$24,000 for the 12 months ended May 31, 2017.
OLS said that following the termination of the proposed acquisition of Malaysian Phosphate Additives Sdn Bhd in January this year, it had identified the financial services industry as an industry with good growth prospects.
It also said that it had been actively pursuing acquisition opportunities in the financial services industry to bolster the group's financial performance and create value for its shareholders.
The group had earlier proposed the acquisition of a 20 per cent interest in Venture Incorporation Public Co Ltd, a Thai financial services company, but it was not satisfied with the results of the due diligence.
Following the termination of the proposed acquisition of Venture Incorporation, OLS said notwithstanding Advance Capital Partners having registered a net loss of S$24,000 in FY2017, the acquisition is in line with its new strategic goal in expanding its business into the financial services sector.
OLS shares on Monday rose by 0.2 Singapore cent or 50 per cent to close at 0.6 Singapore cent.