OneFortune Holdings, a wholly-owned subsidiary of OneApex 5SY , has proposed the disposal of its entire 30% issued and paid-up share capital in Tuas Seatown Dormitory for a total consideration of $5.2 million.
On April 22, OneFortune entered into a sale and purchase agreement with investment holding company Amwich. Amwich is wholly-owned by Amos Tan, a controlling shareholder of OneApex.
Tuas Seatown is engaged in the hostel and dormitory business for students and workers, and operates a three-storey workers’ dormitory at Seatown Industrial Center on Tuas South Avenue 1.
OneApex says it is mindful of the potential costs of implementing changes to the workers’ dormitory to adhere to the Ministry of Manpower’s recently introduced Dormitory Transition Scheme.
Given that the proposed disposal will also result in a profit on disposal of approximately $2.1 million, the company says it presents an opportunity to “realise and unlock” the value of the property.
As at April 22, the existing shareholders of Tuas Seatown are Etrek Network Building (40%), OneFortune (30%), Amwich (20%) and DC Genesis (10%).
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Based on the group’s audited consolidated financial statements for the FY2023 ended Sept 30, 2023, the book value of the sale shares is approximately $3 million, with a net profit attributable of some $704,643.
The book value of the sale shares is inclusive of a $2.1 million shareholder’s loan extended by OneFortune to Tuas Seatown, and has been included as part of the total consideration for the proposed disposal. The remaining $3.1 million is to be paid for the sale shares.
The net proceeds from the proposed disposal will be used for OneApex’s general working capital purposes.
Shares in OneApex closed unchanged at 11.3 cents on April 22.
