AddValue Technologies announced sale of one of its subsidiaries for S$330mn...share rises sharply but closed well below its implied value ??!! Thursday, 27 March, 2014 8:15 AM
Posted by Kevin Scully
...Posted by Kevin Scully
AddValue Technologies announced yesterday that it had reached an agreement to sell one of its subsidiaries for $330mn. The shares rose from 6.5 cents to an intra-day high of 18.1 cents but closed at 15.7 cents.
The transaction is interesting because:
a) it raises AddValue's NTA from US$4.6mn to US$239.3mn
b) NTA per share rises from US cents 0.4 to US cents 20.3 or S cents 25.6
c) there is a payment schedule for the S$330mn
d) the buyer seems to be a Chinese party because one of the condition precedents is that
"all relevant permits, approvals, authorizations and consents of the relevant government authorities of the PRC (including, ...
