News

Pursuant to Paragraph 9.19(24) of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad, the Board of Directors of ASB wishes to announce that Pacific Prime Ventures Pty Ltd (ACN 602 421 821) as trustee for the E Naidu Trust of 319 Glynburn Road, Kensington Park, South Australia, 5068, Australia (“Purchaser”) has on 5 February 2016 signed the Share Sale Agreement (“SSA”) to acquire from Calmford its 100% shareholding in Advansa for a cash consideration of AUD2,300,000 only (equivalent to approximately RM7.0 million) (“Proposed Disposal”). The Proposed Disposal is part of the Group’s plan to divest non-core businesses.

Advansa is a private limited company incorporated in Australia on 13 February 1996 with an authorised share capital of AUD10,000,000 and paid-up share capital of AUD4,700,002. The principal activities of Advansa are manufacturing and marketing of winches, and builder hardware and fastener products.

The cash consideration of AUD2,300,000 for the Proposed Disposal was arrived at on a “willing buyer willing seller” basis after taking into consideration among others the net capital deficiency of Advansa of AUD846,232 based on its unaudited management accounts for the financial period ended 30 September 2015 and the unaudited proforma net tangible assets as at 30 September 2015 after the proposed settlement of all inter-company loans and advances to and from Advansa of AUD2,524,967.  

The Proposed Disposal is expected to be completed by the first quarter of 2016 and it is not expected to have any material effect on the gearing and net assets of ASB Group for the financial year ending 31 December 2016. However, there is an expected loss of approximately RM1.0 million arising from the Proposed Disposal.

Following the completion of the Proposed Disposal, Advansa will cease to be a subsidiary of Calmford and ASB.

Mr PA Eiswaran Naidu Athinaidu is the Executive Director of Advansa and together with his spouse, are the beneficiaries of the E Naidu Trust. They do not hold any directorship or shares in ASB and Calmford.

None of the directors, major shareholders and/or persons connected with the directors and major shareholders of ASB has any interest, direct or indirect, in the Proposed Disposal.

This announcement is dated 5 February 2016.