Intraco plans to sell its fire protection business for $6.9 million, and distribute the bulk of the proceeds back to shareholders via capital reduction.
Eligible shareholders will receive total proceeds of $6.8 million, or 6 cents per share.
This fire protection business, held under an entity called KA Group, was acquired from Soh Yong Poon and his daughter Soh Ying Sin back in 2014.
Since then, they've continued with the management of this business.
According to Intraco I06 , the buyers include Soh Ying Sin and other related parties that are also existing shareholders of itself.
Intraco explains that the divestment is in line with its move to shift its business model towards one that is "more scalable and aligns with the enduring technological trends in today’s world."
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Following the sale, Intraco can focus its resources on its trading, distribution and supply chain solutions businesses in Singapore and the region.
The company also plans to expand its digital assets and tokenization advisory services, regulated domestic and cross -border money transfers as well as money-changing services.
Intraco shares last traded at 25 cents, down 7.41% year to date.
