Boustead Singapore divests investment in OM Holdings

It expects to rake in S$0.5m net gain.

In a release, Boustead Singapore Limited announce that it has divested its entire shareholding of 50,000,000 ordinary shares in OM Holdings Limited, an integrated manganese mining company listed on the Australian Securities Exchange. The trade for the Divestment took place on 28 March 2013, the last trading day of the Company’s financial year ended 31 March 2013. 

The Divestment – representing approximately 7.4% of the existing issued share capital of OMH – was transacted via a married deal at a price of A$0.37 per OMH share for a total sales consideration of A$18.5 million.

The Sale Price was arrived at after negotiations on a willing-buyer and willing-seller basis and represents a premium of 13.8% to the 15-day and 18.6% to the 30-day average closing price of the OMH share on the ASX.

Based on the unaudited accounts of the Company for the 9 months ended 31 December 2012, the net book value attributable to the divested
assets is S$16.4 million and no profit or loss has been derived from the divested assets.

The Company is expected to record a gain of S$5.0 million from the Divestment. However, taking into account the impairment of S$4.5 million up to 3Q FY2013, the net gain on the Divestment would be approximately S$0.5 million.