Pollux Properties to acquire remaining 49.99% stake in associate company

POLLUX Properties said on Friday that it had entered into a share transfer agreement with Elwyn Chan, Chia Yew Nguan and Stirling Fort Capital (SFCPL) to acquire the remaining 49.99 per cent of issued and paid-up share capital in SFCPL at a total consideration of S$300,000.

The acquisition comes following Mr Chan's and Mr Chia's intent to divest their interest in the business to focus on other business pursuits, said the group in a bourse filing.

Pollux Properties had intended to "take over control of the decision-making process and the daily operations of SFCPL" in order to optimise operational efficiencies of the group, it said. It will acquire 285,000 ordinary shares and 15,000 ordinary shares in SFCPL from Mr Chan and Mr Chia respectively.

The acquisition is expected to be funded by the group's internal resources, which are mainly derived from operational cash flows.

Following the acquisition, SFCPL will be a wholly-owned subsidiary of the group.

SFCPL's principal activities are fund management and providing investment advisory services. The firm is a registered fund-management company approved by the Monetary Authority of Singapore back in June 2015.

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As at Oct 9, the company held 50.01 per cent of the total issued and paid up share capital in the SFCPL.

Based on the audited financial statements for the financial year ended March 31, 2020, the net asset value of SFCPL was S$829,287. No independent valuation was conducted on it.

The acquisition is not expected to have a material impact on the company's net asset value per share or earnings per share for the financial year ending March 31, 2021, said the group.

Shares of Pollux Properties last traded on Monday at 2.1 Singapore cents.