Thursday 28 Mar 2024
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KUALA LUMPUR (Sep 19): Salcon Bhd is selling its financially distressed 50.5%-owned Norwegian subsidiary Rayvn AS to the latter's existing shareholders for one Norwegian Krone (50 sen).

In a filing with Bursa Malaysia, Salcon said its wholly-owned subsidiary Salcon ELU Sdn Bhd has entered into a share purchase agreement with Total Safety AS and Enovate AS for the disposal.

Both Total Safety and Enovate own 22% each in Rayvn. Salcon owns Salcon ELU through wholly-owned subsidiary Salcon Engineering Bhd.

The group said the disposal price was because Rayvn is under "severe financial distress with negative shareholders' funds".

Salcon, through Salcon ELU, also entered into a software acquisition agreement with Rayvn and the buyers to buy back all the right, title and interest in and to the intellectual property rights and know-how in relation to Rayvn's software called RAYVN Daily Operation for 6.5 million Norwegian Krone (RM3.3 million).

Salcon said Rayvn will provide further support and maintenance services to Salcon ELU for the next three years at a fee of 500,000 Norwegian Krone (RM253,980) cash, to be paid in advance.

The two agreements are inter-conditional.

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