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Vashion Group sells another operating unit for S$1 'to focus on core business'
CATALIST-LISTED Vashion Group, which changed its name to Incredible Holdings on Nov 28, plans to dispose of its wholly-owned unit Switech Systems & Marketing for an expected net gain of S$55,000, it said on Monday.
Switech Systems & Marketing, or SW, is engaged in the switchgear design and assembly services in Singapore. The sale is part of Incredible's efforts to streamline its corporate structure, Incredible said.
SW will be sold for S$1 to Yap Soo Kiat, a director of SW who resides in Ubi Avenue. The price was arrived at after arms' length negotiations on a willing seller, willing buyer basis and taking into consideration the negative net tangible liabilities position of SW. No valuation was conducted in relation to the proposed disposal, the group said.
Last year, SW recorded revenue of S$65,000 and a pre-tax loss of S$5,000. For the six-month period ended June 30, 2019, SW earned revenue of S$5,000 and a pre-tax profit of approximately S$1,700. Incredible Holdings reported a pre-tax loss of S$1 million in the same period.
Incredible said: "Taking into consideration the concerns about the competitive environment in switchgear design and assembly business and significant decrease in demand... (and SW's net tangible liabilities position), the board has taken the advice of the management and agreed that the proposed disposal would be in the best interest of the group."
As at June 30, SW was in a net tangible liabilities position of around S$46,000.
Last week, Incredible sold another operating unit, Luxury Watch Trading, to executive director and controlling shareholder Christian Kwok-Leun Yau Heilesen for HK$1 for an expected net gain of S$12,000.
Incredible said that both sales will allow it to focus its resources on its "scalable core business, being the distribution of consumable material for the electronics industry and trading of luxury goods".
Incredible shares last changed hands on Nov 29 at S$0.008.