Coliwoo Holdings, an indirect wholly-owned subsidiary of LHN Group, has agreed to dispose of its 20% stake in Coliwoo PP to construction firm Globalpoint Far East for a consideration of $395,264.94.
A sale and purchase agreement (SPA) was signed between Coliwoo Holdings and Globalpoint on Nov 23. The consideration will be paid via a telegraphic transfer (TT) or cashiers’ order.
The SPA is conditional and will be satisfied upon the approval of Globalpoint’s board of directors. Both companies should not be bankrupt by the day of the completion of the transaction.
Coliwoo Holdings will also have the right to require Globalpoint to sell and transfer all its shares to any third party buyer should the purchase price per share for each share bought by Globalpoint remain the same as the purchase price indicated in the sale notice.
Coliwoo may exercise this right by giving written notice to Globalpoint at any time.
Should Globalpoint seek to dispose of its shares in Coliwoo PP, it will have to inform Coliwoo in writing to do so.
Coliwoo PP is a company incorporated on Jan 8, 2021 with a total share capital of $100,000. It is also an indirect wholly-owned subsidiary of LHN. The property at 404 Pasir Panjang Road is registered under the company.
According to LHN, the SPA came about as it was “timely” to have a strategic partner in the operation of the property at 404 Pasir Panjang Road.
Globalpoint has extensive renovation experience in its service field and LHN’s board sees that the strategic cooperation will allow the group to leverage upon its specialised expertise in this field and access to its technical resources.
The book value of Coliwoo PP consists of retained earnings as at Oct 31. Its current share capital amounts to approximately $1.98 million. As consideration of the sale shares is equivalent to the book value of Coliwoo PP’s shares, LHN does not expect any excess or deficit of the proceeds over the book value and gain or loss on disposal.
