SINGAPORE - Catalist-listed Sincap Group will sell its entire stake in subsidiary Beijing Raffles Investment Advisory for S$10 million to Advanceleap Corporation, according to a filing on SGX on Monday (Jun 12).
Beijing Raffles group is a wholly foreign owned enterprise with subsidiaries Beijing Sino-Lonther, Shandong Luneng and Shandong Sincap.
Advanceleap is a privately-held investment holding company.
Sincap, which has mining interests and carries out trading activity, said the sale is in the best interest of the company due to issues involving management and employees' union of Shangdong Luneng Taishan Mining.
Sincap has been assessing the merits of a letter it received in March claiming the payment of 6.8 million yuan (S$1.38 million) from Fu Hao, the head of China operations for Sincap and legal representative of Shandong Luneng. At that time, Sincap said it will take the appropriate action.
Sincap says sales proceeds will be used to expand the business of the company's subsidiary - Orion Energy Resources - and for Orion's working capital.