SINGAPORE - Investment holding company Adventus Holdings said on Tuesday night (May 21) that it has disposed 45 per cent of its stake in subsidiary ADV S3 for US$1.1 million (S$1.5 million) to one of the latter's joint venture partners for a residential project in Vietnam.
Adventus is looking to reduce its exposure in the project after it encountered some difficulties in obtaining licences, permits and/or approvals issued by relevant Vietnamese authorities, it said in a regulatory filing.
The purchaser of the stake in ADV S3 is Tran Hoang Anh Tuan, who is a partner in AP NHS Da Nang Joint Stock Company (AP NHS), a joint venture formed by ADV S3, Panthera and Nguyen Thai Dong Huong on April 19, 2018. The joint venture firm was to acquire a plot of land in Danang, Vietnam, to develop a residential apartment on the 3,825 sq m plot.
ADV S3, an investment holding company, at the time agreed to pay 50.72 billion dong (S$2.9 million) for a 45 per cent stake in AP NHS.
Following the sale of the stake to Mr Tran, ADV S3 will no longer be a wholly-owned subsidiary of Adventus Investments (Vietnam) (AIV), in turn a wholly-owned subsidiary of Adventus Holdings. AIV will continue to hold a 55 per cent stake in ADV S3.
A payment of US$55,252 is required within seven days from the date of the sale and purchase agreement, followed by the balance payment of US$1.05 million no later than May 30, also the date of completion. ADV S3 is also required to provide its audited fiscal 2018 financial statements to Mr Tran.
Proceeds from the disposal will be used for working capital requirements, and to fund acquisition opportunities which arise, Adventus said.
Adventus shares were trading flat at 0.4 cents on Wednesday as at 9.27am.