AcroMeta (SGX:43F
) announced that it has entered into a binding term sheet with an independent third-party buyer in relation to the proposed sale and purchase of 100% of the issued share capital of its wholly owned subsidiary, Acro Harvest Engineering (ACH).
AcroMeta explained that the proposed divestment will free up additional working capital for ongoing operations and future opportunities.
Under the term sheet, the cash consideration for this proposed divestment is $1.4 million, subject to a price adjustment based on the adjusted net asset value of ACH as at completion.
The term sheet also includes agreed safeguards, with completion conditional upon ACH meeting a minimum adjusted net asset value of $1.0 million, including cash and cash equivalents of at least $300,000.
The proposed divestment is subject to the negotiation and execution of definitive agreements, the satisfaction of conditions precedent, and approval by AcroMeta shareholders.
"This transaction allows the Group to sharpen its strategic focus and strengthen its financial flexibility as we position AcroMeta to pursue opportunities aligned with our longer-term priorities,” says Lawrence Toh, executive director of AcroMeta.
See also: Sim Leisure expects 'significantly' higher FY2025 from one-off settlement agreement
Shares in AcroMeta closed flat at 2.4 cents on Feb 5.
