Kingsmen Creatives has, through its 33.33%-owned associated company, Kingsmen Nikko Limited, entered into a sale and purchase agreement (SPA) to dispose of Kingsmen Nikko’s 80% equity interest in Kingsmen Projects Japan Limited.
The stake was sold to Koji Kawamura, who currently holds the other 20% stake in Kingsmen Projects Japan.
Following the completion of the disposal, Kingsmen Projects Japan Limited and its wholly-owned subsidiary Kingsmen Architects & Design Limited (together known as the KPJ group) will cease to be associates of Kingsmen Creatives.
The consideration for the disposal is 160 yen ($1.62). However, the KPJ group has a negative book value and negative net tangible asset (NTA) value of $355,000 as at Nov 30.
The purchase consideration represents an excess over the negative book value of the KPJ group as at Nov 30 attributable to the equity interest, says Kingsmen Creatives in its Dec 26 statement.
The gain on the disposal is expected to be approximately $118,000.
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The group’s net profit before income tax for the 1HFY2022 ended June 30 attributable to the equity interest was approximately $87,000.
Shares in Kingsmen Creatives closed flat at 27 cents on Dec 23.
