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P99 now a cash company after settlement of dispute with subsidiary
P99 HOLDINGS is now a cash company following the resolution of a dispute with its core subsidiary, the former cafe operator said.
P99 said an arbitration dispute that it brought against subsidiary Asia Brand Group and Liu Yanlong, the warrantor in the deal that saw P99 acquire Asia Brand in 2011, was resolved on Nov 27.
Following the arbitration ruling, P99 received net proceeds of S$2.66 million from the 2011 sale and purchase agreement. Based on the company's latest results, P99's cash and bank balance now stands at about 52.04 million yuan (S$11.07 million).
But as a result of the dispute, P99 no longer considers that it has control over Asia Brand even though it is the legal owner of the business, and so has deconsolidated that unit. That will leave P99 as a cash company with no operating business.
The company said it will apply to maintain its listing status.
"The company is currently also considering various options available to the company as it becomes a cash company," P99 said in a statement. "The company's management will continue to oversee the affairs of the company."
P99 shares last traded at 8.3 Singapore cents on Friday.