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Yeo Hiap Seng unit disposes entire interest in Ranko Way for HK$360m in cash
A UNIT of household brand Yeo Hiap Seng has entered into a conditional sales-and-purchase agreement to dispose off its entire interest in property holding company Ranko Way Ltd, an indirect wholly-owned subsidiary, it said in a Singapore Exchange filing on Friday.
The agreement with purchaser Partner Merit Ltd was for a consideration of HK$360 million (S$65 million) to be satisfied wholly in cash and to be completed on or before Aug 4, 2017 or on such other date that the purchaser may postpone to.
The group expects to realise a gain of about S$4.14 million, which includes reclassification of currency translation differences.
Net proceeds from the proposed disposal are intended to be used as general working capital of the group. It said this would further strengthen the group's balance sheet and enhance its financial flexibility to fund potential acquisitions for growth should such opportunities arise.
Under the terms of the agreement, the purchaser was given a guarantee that rental received will not be lower than HK$1.2 million per month, exclusive of management fee, government rent and government rate, for a period of six months from the date of completion.