SGX-listed furniture maker Versalink Holdings Ltd plans to sell assets of its 34%-owned associated company based in Malaysia for RM3.50 million (S$1.08 million).
The associated company Alca Vstyle Sdn Bhd has entered into a entered into a business sale agreement with buyer Max World Idzign Sdn Bhd on Oct 1, the company said in an exchange listing on Sunday.
Alca Vstyle, which trades in all kinds of high-pressure laminate and related products, is owned by Versalink (34%); Stylam Industries Ltd (34%) and Yap Aik Soon.
Its shareholders believe the proposed sale is a good opportunity for them to dispose of a loss-making business and realise the value of the assets at a satisfactory consideration, taking into consideration that the business operating environment is expected to remain challenging in the near future. At the group level, the asset is considered nonk-core.
On its part, Max World Idzign trades in furniture boards and related materials, transportation services and trading in tooling and machinery and related products.
The purchase will be settled with an earnest deposit of RM800,000 followed by six monthly installments of RM450,000 each. – TMR/ Pic source: Versalink.com