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28-06-2016, 10:59 PM
(This post was last modified: 28-06-2016, 11:15 PM by Yoyo.
Edit Reason: touch up on sentence.
)
There is a difference between selling a business unit (subsidiary) and sales of business (partial or whole) of a business unit. The former involves the transfer of shareholding while the latter covers the transfer of assets (may include trademark, brand, value of customer relationship) and liabilities [no involvement of share transfer].
In my opinion, the above Quote on the sales/transfer of Explomo Shares to Anthony, equate to a sales of subsidiary. Thus, all the assets (including cash) and liabilities of the subsidiary, Explomo [net value at S$2.97m], will be stripped from the Group for a purchase consideration of S$3.012m, payable to the investment holding company, Starmo which is turn owned by TSH.
The striking difference is the intangible value on Explomo accorded by TSH (while acquiring Starmo) compared to the value that CEO is willing to pay. It is to note that the intangible value accorded is at different points in time, at a presumed more optimistic time when TSH acquired compared to the lesser interesting time with lower sales performance of Explomo when the CEO is contemplating buying. Whether is it a fair deal is highly subjective, given that there is no competitive bid/taker.
Kind of remind me of a poster showing two signboards reading "we sell antique" at the shopfront, and "we collect junk" at its backdoor.
Purely just my take/interpretation on the above post. I do not know much about this company and its corporate development.
In my opinion, the above Quote on the sales/transfer of Explomo Shares to Anthony, equate to a sales of subsidiary. Thus, all the assets (including cash) and liabilities of the subsidiary, Explomo [net value at S$2.97m], will be stripped from the Group for a purchase consideration of S$3.012m, payable to the investment holding company, Starmo which is turn owned by TSH.
The striking difference is the intangible value on Explomo accorded by TSH (while acquiring Starmo) compared to the value that CEO is willing to pay. It is to note that the intangible value accorded is at different points in time, at a presumed more optimistic time when TSH acquired compared to the lesser interesting time with lower sales performance of Explomo when the CEO is contemplating buying. Whether is it a fair deal is highly subjective, given that there is no competitive bid/taker.
Kind of remind me of a poster showing two signboards reading "we sell antique" at the shopfront, and "we collect junk" at its backdoor.
Purely just my take/interpretation on the above post. I do not know much about this company and its corporate development.
