KUALA LUMPUR: REDTONE INTERNATIONAL BHD [] is disposing of all its 100% stake in REDtone Telecommunications (China) Ltd to Hotgate TECHNOLOGY [] Inc, and is expected to recognise a gain of RM41.44 million.
REDTone, whose shares were suspended for the morning session on Monday, Aug 2, said the entire stake, comprising of 58 million shares, would be disposed to Hotgate. REDtone currently holds 12.25% of Hotgate and after the corporate exercise, Hotgate will be a 91% subsidiary.
"The proposed disposal is an avenue for REDtone to unlock its investment in REDtone China," it said.
It added that based on the audited consolidated net asset of REDtone for the financial year ended May 31, 2009 of RM59.97 million, REDtone, at the company level, is expected to recognise a gain on disposal of RM41.44 million upon completion of the proposed disposal although there will not be any gain or loss to the enlarged REDtone Group arising from the proposed disposal.
"In addition, REDtone would still be able to consolidate the contributions from REDtone China indirectly via REDtone's 91.94% shareholdings in Hotgate upon completion of the Proposals.
"REDtone will be able to control Hotgate, a company listed on the Over the Counter Bulletin Board in the US. With Hotgate's listed status, any future capital required by REDtone China may be raised through Hotgate either via a placement exercise and/or rights issue," it said.
REDTone, whose shares were suspended for the morning session on Monday, Aug 2, said the entire stake, comprising of 58 million shares, would be disposed to Hotgate. REDtone currently holds 12.25% of Hotgate and after the corporate exercise, Hotgate will be a 91% subsidiary.
"The proposed disposal is an avenue for REDtone to unlock its investment in REDtone China," it said.
It added that based on the audited consolidated net asset of REDtone for the financial year ended May 31, 2009 of RM59.97 million, REDtone, at the company level, is expected to recognise a gain on disposal of RM41.44 million upon completion of the proposed disposal although there will not be any gain or loss to the enlarged REDtone Group arising from the proposed disposal.
"In addition, REDtone would still be able to consolidate the contributions from REDtone China indirectly via REDtone's 91.94% shareholdings in Hotgate upon completion of the Proposals.
"REDtone will be able to control Hotgate, a company listed on the Over the Counter Bulletin Board in the US. With Hotgate's listed status, any future capital required by REDtone China may be raised through Hotgate either via a placement exercise and/or rights issue," it said.
No comments:
Post a Comment