DeClout sells 72.09% stake in Acclivis for $75m

It signed a sale agreement with China’s CITIC Telecom.

After initially announcing the merge of Acclivis Technologies and Solutions Pte. Ltd. with another of its subsidiary, Singapore listed technology solutions provider DeClout Ltd. has decided to ink a sale and purchase agreement instead to sell the said unit to CITIC Telecom International Holdings Limited.

Under the agreement, DeClout will be transferring its ownership of the 72.09% stake in Acclivis for a consideration of up to $75 million.

According to the group chairperson Vesmond Wong, this transaction is expected to yield positive financial impact for DeClout.

"This second major milestone validates our ability to execute and enhance shareholder value. As the Group reaps its second harvest, our capital base will increase substantially, enabling us to reinvest in existing subgroups and scale them to maturity," he said.

The group expects the transaction to return gross proceeds of up to $45.6 million, with a disposal gain of up to $27.9 million.

"This forms the second important leg of our strategy to recycle capital while maintaining high growth. We are also pleased to start delivering on our promise to reward shareholders and intend to use part of the net proceeds to thank our shareholders for their continued support,” Wong added.