Thursday 28 Mar 2024
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KUALA LUMPUR (Nov 17): SMTrack Bhd, a backdoor listing target of US-based Wellspring Worldwide Ltd which is the owner of the Tutti Frutti Frozen Yogurt brand, has disposed of a 70% stake in its wholly-owned subsidiary Smartag Technologies Sdn Bhd for RM1,000 cash.

SMTrack said the disposal is in line with its strategic direction to streamline its operation in order to focus on businesses and ventures that are viable and profitable in the mid to long term.

In a filing with Bursa Malaysia today, SMTrack said the stake was sold to two individuals — Mira Edura Mohd Zin and Wai Ai Loo.

It said the original cost of investment in its information technology and consultancy services unit was RM50,098 on March 24, 2008. However, the cash consideration was made after taking into consideration Smartag's net liability value of RM93,991 for the financial period ended July 31, 2017.

In June, SMTrack had announced plans to acquire up to a 100% stake in Wellspring Worldwide for RM310 million through a RM20 million cash payment and the issuance of up to 2.07 billion new shares in SMTrack at an issue price of 14 sen each.

In relation to the proposed acquisition, SMTrack will make a 3-for-2 renounceable rights issue of up to 169.05 million new SMTrack shares, with two free detachable warrants with every three rights shares subscribed.

Subject to the approvals of the relevant authorities being obtained, SMTrack expects the proposals to be completed in the first half of next year.

SMTrack shares closed up 1.5 sen or 8.57% at 19 sen today, with 6.78 million shares done, bringing a market capitalisation of RM21.41 million.

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