Synagie to partner computer manufacturers to expand insurtech business

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CATALIST-LISTED Synagie Corporation is partnering leading computer manufacturers to, among other things, bundle its accidental damage protection solutions and third-party administration services in major government tenders for the supply of laptops and tablets, it said late on Thursday in response to Singapore Exchange (SGX) queries. Read more at The Business Times.

On Tuesday, SGX had asked Synagie to explain why its board is of the opinion that the net distributable amount from the proposed sale should be distributed to shareholders instead of being invested to grow the insurtech business.

It added that there is no assurance that investing the NDA into the insurtech business will allow shareholders to see returns on investment in the near term, given the market risks and the time required to incubate and grow such new businesses. The company said a key rationale for its board approving the proposed sale was the opportunity for shareholders to immediately realise the value of their investments, particularly in the group's e-commerce, e-commerce enabler and logistics business.

Synagie also clarified that it will retain about S$930,000 from the proposed sale consideration for working capital and tax-related expenses, which may be used to expand its insurtech business if necessary.

 

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