TA Corporation, on March 10, announced that it received a letter of intent (LOI) from SGUnited Capital to purchase various units at New World Centre for $43 million.
The LOI, dated March 8, proposed that the properties be sold on an “as-is-where-is” subject to existing tenancies where applicable. This means that TA Corp’s subsidiaries, which are also presently tenants of the New World properties, will continue to conduct their business in the same properties after the sale.
The LOI also requested that the grant of the options to purchase (OTPs) requires a waiver from the Singapore Exchange S68 Regulation (SGX RegCo) or in lieu thereof approval from TA Corp’s shareholders.
In addition, a deposit of $468,700 is proposed to be placed with the LOI to demonstrate SGUnited’s interest. The deposit has to be refunded if the grant is not satisfied by April 8. If the OTPs are granted, SGUnited has up to May 2 to exercise the options and complete the proposed disposal within 12 weeks from the exercise.
The completion of the proposed disposal is conditional on the approval of TA Corp’s shareholdres.
The LOI was acknowledged by TA Corp on March 8 as well.
According to the filing on March 10, the proposed disposal is likely to constitute a “major transaction” under the listing rules of the Singapore Exchange (SGX).
Shares in TA Corp closed flat at 7.3 cents on March 8.
