RATIONALE FOR THE PROPOSED DISPOSAL. The Proposed Disposal will enable the Company to realise gains from its investment in TISB in order to focus on other project developments of the Company.
RATIONALE FOR THE PROPOSED DISPOSAL. 5.1 The Proposed Disposal will dispose loss-making subsidiaries of the Group and is expected to improve the overall financial position of the Group The Company is proceeding with the Proposed Disposal in view of the weak financial performance of the Sale Entities. The Company believes that prospects of the Sale Entities are not favourable as the Group has been facing increasing challenges in the electronic components market. The Proposed Disposal is expected to improve the overall financial position of the Group. Assuming that the Proposed Disposal was completed on 31 December 2014, the net tangible asset of the Group for the financial year ended 31 December 2014 would increase by approximately US$4.2 million from US$4.6 million to US$8.8 million. The Proposed Disposal is also in line with the Group’s strategy of streamlining its non-trading business unit and to reduce the Group’s operating costs as well as to improve its operational efficiencies.
RATIONALE FOR THE PROPOSED DISPOSAL. 6.1 The Board believes that the Acquirers will greatly help Tritech Environmental in its development. Upon completion of the Proposed Disposal, Tritech Environmental will become a subsidiary of Qingdao Ocean Group and become part of a state-owned enterprise. This will allow Tritech Environmental to be eligible to tender for certain governmental projects that are reserved for state- owned enterprises. These projects are usually strategic and large-scale with reasonable profit margins. Further, as part of a state-owned enterprise, Tritech Environmental will have more ready access to financing options from lenders and other sources as well as financial support from Qingdao Ocean Group. Together with assistance in market development from Rongtai Construction, this will allow Tritech Environmental to secure more working capital and speed up its business development and become a leading water treatment company in China. As a remaining 40% shareholder in Tritech Environmental, such development is expected to bring significant economic value to the Company.
RATIONALE FOR THE PROPOSED DISPOSAL. 7.1 The Company, via its subsidiaries and joint venture companies, is currently developing or planning to develop a significant portion of the lands within Puteri Harbour, centred around the Commercial South and Private Marina precincts. The Proposed Disposal would allow the Company to focus its resources in developing the abovementioned land parcels.
RATIONALE FOR THE PROPOSED DISPOSAL. 4.1. Currently, more than 95% of the Group’s business operations is focused in Cambodia for its property, real estate and agricultural business, while the remaining 5% remains in Singapore with the Farm Resort which is owned by the Target.
RATIONALE FOR THE PROPOSED DISPOSAL. The rationale for the Proposed Disposal is to allow the Group to monetise its investment value for the benefit of the shareholders of the Company. It will also allow the Group to strengthen its financial position. The Proposed Disposal will also allow the Group to better concentrate on its marine business.
RATIONALE FOR THE PROPOSED DISPOSAL. The Proposed Disposal will allow the Company to realise the investments in CPPL, which would unlock value for Shareholders and further strengthen the Company’s financial position. The Proposed Disposal will also enable the Company to set off from the Consideration the equivalent sum under the amount (both principal and interest) due to Xx Xxx under the convertible loan agreement, as such repaying part of the principal amount due to Xx Xxx under the Convertible Loan Agreement. The Proposed Disposal is also a condition under the Settlement Deed negotiated with Xx Xxx to resolve the Company’s dispute with Xx Xxx.
RATIONALE FOR THE PROPOSED DISPOSAL. The business of Biofuel is technology-driven requiring continuous investments in a competitive emerging market. The Purchaser has expressed interest in the business and having the financial means and market synergy to enhance the business of Biofuel. The Company assessed this as a timely opportunity for it to partly divest its investment in Biofuel in the interest of the shareholders of the Company and the interest of Biofuel.
RATIONALE FOR THE PROPOSED DISPOSAL. The Proposed Disposal is in line with the Group’s direction of focusing its resources in markets with potential for higher returns.
RATIONALE FOR THE PROPOSED DISPOSAL. 4.1 The Board is of the view that the Proposed Disposal is in the best interest of the Group given that:
