SINGAPORE - Mainboard-listed SHS Holdings is selling its refined petroleum distribution business for about $100.288 million, the company said on Friday.
It has signed a conditional share sale and purchase agreement with Brenntag (Holding) BV, a subsidiary of chemical distributor Brenntag AG, for the disposal of its entire shareholding interests in two wholly owned subsidiaries - Tat Petroleum and Axxmo International - and PT Tat Petroleum, a unit of Tat Singapore.
The move will "unlock value for the company's shareholders and increase the overall financial capacity and flexibility of the group", so it can grow its other strategic business units, said SHS Holdings' group chief executive officer Henry Ng.
The divestment, which was reached on a willing-buyer, willing-seller basis, should be completed by the fourth quarter of this year.
With the divestment, SHS Holdings will be left with two core businesses of structural steel and facade under its subsidiary Hetat; and corrision prevention.
The net proceeds from the proposed disposal, after deducting costs and expenses, is estimated to be about $98.9 million which will be used for working capital requirements, general corporate purposes and reducing the external borrowings of the group, it said.