Enviro-Hub Holdings has entered a non-binding letter of intent for the proposed disposal of HLS Environmental and HLS Property, which are wholly-owned entities of the company.
The letter of intent provides that the enterprise value for the subsidiaries will be between $45 million to $55 million.
The release from Enviro-Hub notes that given the proposed disposal will incur on a debt-free, cash-free basis, the company shall leave an amount of $1.5 million in the subsidiaries’ working capital, and the total consideration payable to Enviro-Hub will increase to $46.5 million to $56.5 million.
The potential purchaser is a business company headquartered in Asia Pacific, the bourse filing notes.
Both Enviro-Hub and the purchaser will work with each other until Sept 30, 2025.
Enviro-Hub says that the letter of intent is non-binding and not intended to constitute a firm intention to make an offer.
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The release from Enviro-Hub notes that the proposed disposal is subject to conditions, including the satisfactory due diligence completed by the potential purchaser, comprehensive financial disclosure received from the company, among others.
The purchaser has obtained approval from its own board to pay a deposit of $500,000 to Enviro-Hub.
Shares in Enviro-Hub closed flat at 2.4 cents on Apr 3.
