King Wan Corporation’s Strategic Exit from Maritime Asset: S\$3.56 Million Disposal to Unlock Value and Boost Liquidity

Key Points from the Announcement

• King Wan Corporation Limited (“King Wan” or “the Company”) has announced a proposed disposal of its entire 30% stake (30,000 shares) in Gold Hyacinth Development Pte. Ltd. (“GHD”), an indirect associated company.
• The sale is executed through its wholly-owned subsidiary, K & W Eco Plus Pte. Ltd., to Mrs. Nawarat Wangpreedalertkul, a Thai businesswoman.
• The purchase consideration is S\$3,560,000, settled in cash, representing a premium over the carrying value of the asset and advances.
• The transaction is classified as a “disclosable transaction” under SGX Listing Manual, and does not require shareholder approval.
• GHD is loss-making and in a net liability position; the disposal is expected to result in a gain of S\$198,000 and improve King Wan’s working capital and liquidity.
• Proceeds will be used for general working capital, not for special dividends or buybacks.
• No introducer fees, service contracts, or related party transactions involved (confirmed by SGX-ST).
• The transaction is price sensitive as it affects King Wan’s financial position, liquidity, and business strategy.

Detailed Analysis for Investors

Transaction Overview

King Wan is divesting its entire holding in GHD, an indirect associated company engaged in chartering ships and boats with crew, specifically owning and operating the bulk carrier “Hai Jin”. The sale involves 30,000 ordinary shares (30% of GHD) and is valued at S\$3.56 million. Post-transaction, GHD will no longer be part of the King Wan Group.

About the Purchaser

Mrs. Nawarat Wangpreedalertkul is a Thai national with global business interests. Importantly, while she is related to two key individuals at King Wan (Ms. Siraarpa Siriviriyakul and Ms. Ganoktip Siriviriyakul), the Singapore Exchange has confirmed that the transaction does not constitute an interested person transaction. She and her associates have no direct or indirect shareholding or business relationship with King Wan outside of the familial connections already disclosed.

Valuation and Financial Impact

• The net tangible liabilities of the Sale Shares are US\$1,185,000 (S\$1,588,000), and the advances from King Wan to GHD stand at S\$3,362,000 (with a loss allowance of S\$1,513,000).
• The independent valuation of Hai Jin, GHD’s principal asset, is US\$15 million (S\$19.51 million), slightly above its book value (US\$14.7 million).
• King Wan will book a gain of S\$198,000 on the transaction.
• After accounting for S\$30,000 in transaction expenses, net proceeds will be used to bolster liquidity and working capital.

Conditions and Completion

Completion is subject to standard conditions, including board approvals, assignment of shareholder loans, required government and third-party consents, and waivers of pre-emption rights from other shareholders of GHD. Completion is targeted for 17 October 2025.

Financial Effects

• NTA per Share: Will rise marginally from 9.91 cents to 9.93 cents post-disposal.
• EPS: For FY2025, EPS will increase from 0.49 cents to 0.52 cents due to the disposal gain.
• The transaction removes a loss-making asset and a net liability from King Wan’s books, improving the Group’s financial health and immediate liquidity.

Strategic Rationale

GHD has been loss-making and in a net liability position since FY2016, primarily due to industry headwinds in the global maritime sector. King Wan has had to continually support GHD with loans, which has strained the Group’s liquidity. The disposal allows King Wan to recover these advances (shareholder loans) and refocus its financial resources on core businesses or new opportunities, supporting long-term shareholder value. The sale will not materially impact King Wan’s core businesses.

Shareholder and Price Sensitivity Considerations

• This sale will immediately improve King Wan’s liquidity and working capital, remove a drag on earnings, and slightly enhance NTA and EPS.
• The disposal may signal a strategic shift away from low-return or loss-making maritime investments, which could be positively viewed by the market.
• There is no guarantee the transaction will complete—shareholders should monitor announcements for further updates.
• There are no service contracts, related party deals, or introducer fees, reducing governance risks.

Investor Takeaway

This is a strategically significant transaction for King Wan Corporation. While the immediate financial uplift is modest, the exit from a loss-making, capital-consuming asset and the redeployment of cash into more productive uses can enhance shareholder value and may positively influence the share price. The transaction highlights management’s willingness to pivot away from non-core, underperforming segments and focus on liquidity and core strengths.

However, as completion is subject to several conditions, and the disposal relates to a relatively small portion of the Group’s overall net assets and income, investors should continue to monitor the situation and not assume completion until confirmed.

Disclaimer

This article is for informational purposes only and does not constitute investment advice. All information is based on public disclosures by King Wan Corporation as of 13 October 2025. Investors should seek professional advice before making any investment decisions and monitor further announcements from the Company for updates on the transaction.

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