Polaris unit sells JV stake in Philippines, exits market amid falling revenues

ELECTRONICS distributor Polaris, through its subsidiary Polaris Explorer (PEPL), will dispose its entire 40 per cent shareholding in Polaristitans Philippines to Techtitan Technology for 30 million pesos (S$833,757).

In a bourse filing on Friday, the group said it is pulling out of its existing business in the distribution of mobile communication devices and accessories in the Philippines following the disposal, citing declining revenues amid the Covid-19 crisis.

Polaristitans, a 40:60 joint venture between PEPL and Techtitan, was incorporated in September 2014.

The group said the disposal consideration was determined on a willing-buyer, willing-seller basis after "arm's length negotiations", taking into account the book value of the sale shares of S$812,000, the net tangible asset value of the sale shares of S$1.1 million, and the net loss attributable to the sale shares of S$45,607.24 as at Dec 31, 2020.

The consideration will be satisfied in four quarterly instalments of 7.5 million pesos per instalment from this month through March next year.

Polaris said the disposal is a continuation of the group's efforts to strengthen its financial position and utilise its resources to focus on sustainability-related businesses.

As at Friday, Polaris chief executive officer Soennerstedt Carl Johan Pontus and general manager Lim Chee Keong were directors of Polaristitans as nominees of PEPL. Post-disposal, both parties shall be deemed to have resigned as directors of Polaristitans upon the full payment of the first instalment of the consideration on June 15.

Polaris shares closed unchanged at 0.4 Singapore cent on Friday.