SINGAPORE - IT solutions company Sevak is divesting its stake in subsidiary, Alpha One for $6,000.
According to the company, Alpha One has been non-operative from the last three years.
In a regulatory filing on Wednesday morning, Sevak noted that it has on March 26, entered into a sale and purchase agreement with Top Performers Learning & Consulting Sdn Bhd, to sell 100 per cent of the shares it holds in Alpha One.
Following the proposed disposal, Alpha One will cease to be a wholly owned subsidiary of Sevak.
The deal value of $6,000 was arrived at after taking into account Alpha One's net asset value of about S$5,865 as at Dec 31, 2018, and about $5,022 as at Feb 28, 2019.
To facilitate the proposed disposal, the company also carried out an internal restructuring to carve out Alpha One's subsidiary, MediaRing.com (Shanghai), from Alpha One to Sevak.
"The company's intent was to only divest Alpha One and not MediaRing Shanghai. Hence, a restructuring exercise wasundertaken where MediaRing Shanghai has been moved internally to be directly owned under the ultimate holding company, Sevak," the company said.
Shares in Sevak last traded at $3.40 apiece on March 25, up 2.4 per cent, or eight cents.
Last week, the company which is on the Singapore Exchange's watch list, announced a proposed partial offer that, if concluded, will result in the offeror and its concert parties holding 51 per cent of the company.
SAC Capital, for and on behalf of the offeror Smart Entertainment, is making a voluntary conditional cash partial offer for some 1.48 million shares in Sevak, representing a 12.51 per cent stake in the firm.