Tiong Seng Holdings Completes S\$10.5 Million Major Property Disposal: What Investors Should Know

Key Highlights:

• Completion of Sale: Tiong Seng Holdings Limited (“Tiong Seng” or the “Company”) has successfully completed the disposal of its leasehold property located at 6 Tuas South Street 11, Singapore 637094 (“Tuas Property”) for a total consideration of S\$10,500,000 to an unrelated third party.
• Major Transaction Status: The sale qualifies as a “major transaction” under Rule 1014(a) of the SGX Listing Manual, with the relative figure under Rule 1006(c) exceeding 20%.
• Shareholder Approval: The disposal was first authorised by shareholders at an extraordinary general meeting (EGM) on 15 December 2023, and the mandate was renewed at subsequent annual general meetings, most recently on 30 April 2025.
• Completion Date & Payment: The transaction was completed on 17 September 2025, with the balance amount of S\$9,450,000 (90% of the consideration) paid to Tiong Seng Contractors (Private) Limited (“TSC”), the wholly-owned subsidiary holding the property.
• Lease Details: The property is a leasehold asset granted by JTC to TSC from 27 May 2015 for a tenure of 20 years and 6 months, acquired on 1 December 2016.

What Shareholders Must Know

• Price Sensitivity: The successful completion of this major disposal could have a direct impact on the Company’s financials, potentially strengthening its cash position and providing flexibility for future investments or debt reduction.
• Transparency & Governance: Tiong Seng has demonstrated solid corporate governance, seeking and renewing shareholder approval for this significant transaction at both EGM and AGMs. This transparency may be viewed positively by institutional investors and market participants.
• Potential Impact on Share Price: As a major transaction, the disposal and the inflow of S\$10.5 million in cash could influence investor sentiment and may drive trading activity in Tiong Seng shares. The proceeds could be deployed to strategic business opportunities, expansion, or to shore up the balance sheet, all of which are price-sensitive factors.
• Valuation & Minimum Disposal Price: Updated valuations and minimum disposal prices were considered in mandating the sale, indicating a disciplined approach to asset management.

Details Investors Should Not Miss

– The disposal process began with an option to purchase granted by Tiong Seng Contractors (Private) Limited to an unrelated third party, followed by exercise of the option on 20 June 2025.
– The completion date for the transaction is 17 September 2025, marking the formal transfer of the property and receipt of the bulk of the proceeds.
– The property had a remaining lease tenure of approximately 10 years at the time of disposal, suggesting prudent timing in asset monetisation.
– The Board, led by Executive Director and CEO Pek Lian Guan, has overseen the transaction, which aligns with the Company’s strategy to optimise its asset portfolio.

Why This News Matters

This is a major corporate event for Tiong Seng Holdings, involving a substantial asset and a materially significant cash inflow. The transaction’s size, shareholder approval process, and immediate financial impact make this news highly relevant for investors. The ability to deploy S\$10.5 million in proceeds offers strategic options for the Company, and the market may speculate on possible uses of the funds—dividends, reinvestment, or balance sheet strengthening.

Disclaimer

This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own due diligence and consult with professional advisors before making investment decisions related to Tiong Seng Holdings Limited.

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