Boldtek Holdings, which has been placed under judicial management since April 8, has disposed of its entire stake in its subsidiary, Boldtek Projects, for $230,000.
According to the company, the buyer is an investor keen on deepening his interest in Singapore’s built industry. He is the managing director on the board of Fontern International Group and Transgrow Group. The companies are involved in several businesses including steel and hardware trading, oil palm and rubber plantations, plantation development, hospitality, property investment and development, as well as business acquisition.
Based on Boldtek Projects’ management accounts for FY2024 ended June 30, the subsidiary reported a net loss of $2.1 million for the year. It has a negative tangible asset position of $2.8 million after making provisions for intercompany balances due from other Boldtek Group entities which are insolvent.
Cashflow is also said to remain “challenging” for Boldtek Projects. The company may require further capital injection from its shareholders to support its working capital.
“As the company is not in a position to contribute further capital, this may lead to further dilution of the company’s equity shares in Boldtek Projects,” reads Boldtek’s Oct 18 statement.
Shares in Boldtek last traded at 3.5 cents before its trading halt on Jan 12, 2023.
