Vashion Group sells another operating unit for S$1 'to focus on core business'

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Vashion Group sells another operating unit for S$1 'to focus on core business'.

CATALIST-LISTED Vashion Group, which changed its name to Incredible Holdings on Nov 28, plans to dispose of its wholly-owned unit Switech Systems & Marketing for an expected net gain of S$55,000, it said on Monday.

Switech Systems & Marketing, or SW, is engaged in the switchgear design and assembly services in Singapore. The sale is part of Incredible's efforts to streamline its corporate structure, Incredible said. SW will be sold for S$1 to Yap Soo Kiat, a director of SW who resides in Ubi Avenue. The price was arrived at after arms' length negotiations on a willing seller, willing buyer basis and taking into consideration the negative net tangible liabilities position of SW. No valuation was conducted in relation to the proposed disposal, the group said.

Last year, SW recorded revenue of S$65,000 and a pre-tax loss of S$5,000. For the six-month period ended June 30, 2019, SW earned revenue of S$5,000 and a pre-tax profit of approximately S$1,700. Incredible Holdings reported a pre-tax loss of S$1 million in the same period.Incredible said:"Taking into consideration the concerns about the competitive environment in switchgear design and assembly business and significant decrease in demand...

 

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