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Procurri in dispute with JV stake seller over alleged discrepancies
PROCURRI Corporation on Tuesday said its US subsidiary has rejected alleged discrepancies of some US$474,317, which formed the basis of a demand for indemnification by the sellers of a stake in Procurri's US joint-venture, Rockland Congruity.
The demand came after wholly-owned subsidiary Procurri US made a post-closing date payment on Feb 14, the mainboard-listed enterprise hardware supplier said in a regulatory update.
The alleged discrepancies were the result of various adjustments assessed by Procurri US that were taken into consideration for set-off against the post-closing date payment.
Procurri US is working with the sellers to resolve the matter, Procurri Corp said.
The group added that the alleged disputed sum is not expected to have any material impact on its consolidated net tangible assets and earnings per share for the current financial year ending Dec 31, 2020.
Procurri Corp announced on Apr 1, 2019 that it had closed its acquisition of the 49 per cent stake in Rockland Congruity. The group said in November 2018 that it would pay US$22 million to acquire the stake.
Procurri shares ended at 21 Singapore cents on Tuesday, up 0.5 cent or 2.4 per cent.