Advanced Holdings Ltd. Announces Extension of Completion Date for Disposal of Wholly-Owned Subsidiary
Key Points for Investors:
- Extension of Completion Date: Advanced Holdings Ltd. has announced an extension for the completion of the proposed disposal of its wholly-owned subsidiary, Advanced CAE Saudi Arabia Company Ltd (“CAEKSA”). The new deadline for completion has been extended from before 31 December 2025 to before 30 June 2026, following a fifth supplemental agreement (“5th SA”) with the buyer. The extension was mutually agreed upon due to tax and administrative reasons in Saudi Arabia.
- Key Milestones Met: As of the date of the announcement, the buyer has received full payment for purchase orders totaling SAR4,667,854 (approximately S\$1.6 million) related to projects between Saudi Arabian Basic Industries Company (“SABIC”) and Advanced CAE (ME) Control System LLC (“CAEME”).
- Warranty Obligations: The seller has discharged its warranty obligations for 70% of the value and is currently working with the buyer to ensure compliance with local tax regulations.
- No Change in Other Terms: All other terms and conditions of the Sale and Purchase Agreement (SPA) and previous supplemental agreements remain unchanged.
- Document Availability: The 5th SA is available for inspection at the company’s registered office for three months from the announcement date.
- Directors’ Statement: The board has collectively and individually accepted full responsibility for the accuracy of the information disclosed in the announcement and affirms that all material facts have been fully and truthfully disclosed.
Key Details and Implications for Shareholders
This announcement is significant for shareholders for several reasons:
- Potential Price Sensitivity: The extension of the completion date introduces uncertainty regarding the finalization of the sale. While the key financial aspects (such as payment for purchase orders) have been addressed, delay in completion may impact the company’s financial planning and timeline for recognizing any profits or proceeds from the disposal.
- Risk of Non-Completion: The company has issued a caution to shareholders, stating there is no certainty or assurance as of the date of the announcement that the proposed disposal will proceed to completion. Investors are advised to be prudent and not to assume the transaction is guaranteed until it is finalized.
- Ongoing Compliance: The company is actively working with the buyer to address all local tax compliance matters, which could be a crucial step for the successful closing of the transaction.
- Further Announcements Expected: The company has committed to providing further updates as developments arise, which may affect the share price depending on the nature of the updates.
What Should Shareholders Do?
Shareholders are advised to exercise caution when trading the company’s shares due to the uncertainty around the completion of the proposed disposal. They should closely monitor future announcements and consult professional advisors if in doubt about their investment actions.
Company’s Statement: The announcement was made by Dr Wong Kar King, Managing Director, on 31 December 2025. It has been reviewed by the company’s sponsor, UOB Kay Hian Private Limited, but has not been approved by the Singapore Exchange Securities Trading Limited (SGX-ST).
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 their financial advisors before making any investment decisions. The author and publisher are not responsible for any losses arising from reliance on the information provided herein.
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