Procurri accepts non-binding US$115m offer for business unit

MAINBOARD-LISTED Procurri Corp has accepted a letter of intent from a would-be buyer of its third-party hardware maintenance business, the board said on Friday evening.

Procurri will sell the business for US$115 million in cash to third-party maintenance company Park Place, and has also inked an exclusivity agreement until Dec 31, 2019, subject to three 15-day extensions, under an agreement struck on Nov 21.

But Procurri, which is an enterprise hardware supplier, stressed in its bourse filing that the letter of intent is not legally binding and "there can be no assurance that any transaction will eventually materialise".

It noted that Park Place must get formal approval from its board of managers and equity fund majority owners for any definitive agreement, while the planned transaction will also need to meet possible regulatory requirements, including with the Singapore Exchange.

"Shareholders are advised to exercise caution when dealing in the shares of the company as there is no certainty or assurance as at the date of this announcement that any definitive agreements will be entered into, that the terms and conditions of the proposed acquisition will not differ from those set out in the (letter of intent), or that the proposed acquisition will be undertaken at all," the company added.

Procurri had halted trading in early-November after receiving "an unsolicited, non-binding letter of intent". It moved to resume trading in the wake of its latest disclosure, after the market close on Friday.