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The Business Times Singapore
July 5, 2014 Saturday
Another step forward for APS transformation plan
by Anita Gabriel
Singapore
ASIA-PACIFIC Strategic Investments' (APS) strategic shift out of the
funeral services business and into the mining industry has moved
another step forward.
The Catalist-listed firm said it is selling its entire interest in HMS
Capital Sdn Bhd (HMSC), a bereavement care services firm, to APS
executive director Heng Aik Koon for RM10.7 million (S$4.2 million) in
cash.
The deal, which is an interested-person transaction (Mr Heng is also
chief executive of HMS), is part of APS's transformation plan to tap
the "highly prospective mining industry", said APS in an announcement.
Towards this end, the firm had revealed a $500 million reverse
takeover (RTO) involving Armenian gold miner Coeur Gold Armenia in
February.
The purchase price for the HMSC divestment was reached after
arm's-length negotiations and taking into consideration HMSC's net
loss position for the last five financial years.
Based on APS's unaudited accounts for the nine months ended March
2014, the book value of the sale shares and the net liability of HMSC
stood at RM109.2 million and RM2.2 million, respectively.
Given the price tag of RM10.7 million, the disposal is expected to
result in a deficit over the book value of RM98.5 million.
The divestment of the core business, subject to shareholders' nod,
will also result in a disposal loss of RM189 million for APS, based on
its unaudited results over the same period.
An independent valuation will be done on the sale shares.
The move comes as no surprise as APS had earlier said it planned to
cease and dispose of its funeral services business before completing
the acquisition of Coeur Gold Armenia - an indirect owner of
exploration rights for gold, silver, copper and antimony in two
Armenian mines.
"This change of its core business will enhance shareholder value as
the company anticipates good cashflow from the new business and has
the prospect of quick expansion of the mineral mining business - first
in Armenia and subsequently, as opportunities become available, in
other parts of Central Asia and South-east Asia," it said.
The proceeds from the disposal may be used to capitalise on business
opportunities and further growth to enhance shareholder value in the
long term, said APS.
Given the price tag of RM10.7 million, the disposal is expected to
result in a deficit over the book value of RM98.5 million.
July 5, 2014 Saturday
Another step forward for APS transformation plan
by Anita Gabriel
Singapore
ASIA-PACIFIC Strategic Investments' (APS) strategic shift out of the
funeral services business and into the mining industry has moved
another step forward.
The Catalist-listed firm said it is selling its entire interest in HMS
Capital Sdn Bhd (HMSC), a bereavement care services firm, to APS
executive director Heng Aik Koon for RM10.7 million (S$4.2 million) in
cash.
The deal, which is an interested-person transaction (Mr Heng is also
chief executive of HMS), is part of APS's transformation plan to tap
the "highly prospective mining industry", said APS in an announcement.
Towards this end, the firm had revealed a $500 million reverse
takeover (RTO) involving Armenian gold miner Coeur Gold Armenia in
February.
The purchase price for the HMSC divestment was reached after
arm's-length negotiations and taking into consideration HMSC's net
loss position for the last five financial years.
Based on APS's unaudited accounts for the nine months ended March
2014, the book value of the sale shares and the net liability of HMSC
stood at RM109.2 million and RM2.2 million, respectively.
Given the price tag of RM10.7 million, the disposal is expected to
result in a deficit over the book value of RM98.5 million.
The divestment of the core business, subject to shareholders' nod,
will also result in a disposal loss of RM189 million for APS, based on
its unaudited results over the same period.
An independent valuation will be done on the sale shares.
The move comes as no surprise as APS had earlier said it planned to
cease and dispose of its funeral services business before completing
the acquisition of Coeur Gold Armenia - an indirect owner of
exploration rights for gold, silver, copper and antimony in two
Armenian mines.
"This change of its core business will enhance shareholder value as
the company anticipates good cashflow from the new business and has
the prospect of quick expansion of the mineral mining business - first
in Armenia and subsequently, as opportunities become available, in
other parts of Central Asia and South-east Asia," it said.
The proceeds from the disposal may be used to capitalise on business
opportunities and further growth to enhance shareholder value in the
long term, said APS.
Given the price tag of RM10.7 million, the disposal is expected to
result in a deficit over the book value of RM98.5 million.