Soon Hock Enterprise Holding Limited Announces Proposed Disposal of Leasehold Property for S\$1.5 Million

Key Highlights and Details for Shareholders

Soon Hock Enterprise Holding Limited (“Soon Hock” or the “Company”) has announced that its wholly owned subsidiary, Soon Hock Property Development Pte. Ltd., has granted an option to purchase for the proposed disposal of its property located at 8 Kaki Bukit Avenue 4 #02-02, Singapore 415875 to Vivre Creative Design Pte. Ltd. (“Purchaser”), an unrelated third party. The transaction is structured as a cash sale with a total consideration of S\$1,500,000, exclusive of Goods and Services Tax (GST).

Key Points of the Proposed Disposal

• Property Details: Leasehold property with a 60-year lease starting from 15 December 2010.
• Purchaser: Vivre Creative Design Pte. Ltd. is not related to any directors, controlling shareholders, or their associates.
• Exercise Period: The option to purchase must be exercised by the Purchaser before 4:00 p.m. on 27 February 2026.
• Completion Date: The transaction is scheduled for completion on 30 June 2026, or a later mutually agreed date.

Rationale for the Disposal

The Board has identified this transaction as a strategic opportunity to divest the property at a gain, enhancing the Group’s working capital for ongoing operations. This move is expected to strengthen the Company’s financial flexibility by unlocking value from non-core assets.

Financial Impact and Valuation

• Sale Consideration: S\$1,500,000 (exclusive of GST), with the following payment structure:
  • 5% initial deposit (S\$75,000 + S\$6,750 GST) already paid.
  • Additional deposit of S\$1,000 (+ S\$90 GST) payable upon exercise of the option.
  • Balance of S\$1,424,000 (+ applicable GST) due upon completion.
• Valuation: Independent valuation by Savills Valuation and Professional Services (S) Pte. Ltd. confirmed the property’s market value at S\$1,500,000 (as at 31 March 2025), supporting the transaction price.
• Book Value and Gain: As at 31 March 2025, the book and net tangible value of the property stood at approximately S\$1,178,914. The anticipated net gain on disposal is approximately S\$336,117.

Price-Sensitive Information and Shareholder Considerations

• Net Gain Realisation: The disposal will result in a direct gain of about S\$336,117, which is beneficial for the Company’s bottom line but not expected to have a material impact on earnings per share or net tangible assets for the current financial year ending 31 December 2025.
• Transaction Classification: The transaction does not require shareholder approval or further announcement under Chapter 10 of the SGX-ST Listing Manual, as the relative figures for the disposal are below the required thresholds.
• Liquidity and Capital Management: The added working capital from this disposal could provide more operational flexibility and support for future business initiatives.
• Transparency: Shareholders can inspect a copy of the Option at the registered office of the Company for three months from the date of the announcement.

Potential Market Impact

While the gain on disposal is positive, the Company has clarified that the disposal is not expected to have any material impact on the Group’s earnings per share or net tangible assets for the current financial year. However, investors should be aware that the realisation of a gain and improved working capital position are positive developments and may support investor confidence in the management’s efforts to enhance asset efficiency.

Additional Information

• The Option is available for inspection at the Company’s registered office for three months from the date of the announcement.
• The transaction is managed by Maybank Securities Pte. Ltd. and United Overseas Bank Limited, who serve as Joint Issue Managers, Joint Global Coordinators, and Joint Bookrunners for the Company’s initial public offering. They do not assume responsibility for the contents of this announcement.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors are advised to conduct their own due diligence and consult professional advisers before making any investment decisions. The information herein is based on the Company’s official announcement and is subject to change without notice.

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