Addvalue Technologies Proposes Spin-Off Listing of Addvalue Solutions on NASDAQ

Key Developments Investors Need to Know

Addvalue Technologies Ltd (“Addvalue” or “the Company”) has announced a significant corporate move that could reshape its business structure and investor profile. The Company has submitted an application to the Singapore Exchange Securities Trading Limited (SGX-ST) regarding a proposed spin-off and listing of its wholly-owned subsidiary, Addvalue Solutions Pte. Ltd. (“AVS”), on the NASDAQ Stock Market in the United States. This marks a strategic step to unlock value from its Inter-Satellite Data Relay System (“IDRS”) business.

Highlights of the Proposed Spin-Off Listing

• Spin-Off of IDRS Business: The proposed spin-off concerns all of Addvalue’s business and commercial activities involving the IDRS technologies, which include the supply of IDRS terminals and related services such as airtime, design, solutions, and applications.
• Initial Public Offering (IPO): Addvalue Solutions Pte. Ltd. (or a new holding entity, if required) will undertake an IPO to list its shares on NASDAQ. This provides Addvalue an avenue to tap into U.S. capital markets and potentially realize higher valuations for its IDRS business.
• SGX Concurrence: SGX-ST has concurred that the proposed spin-off listing would not amount to a chain listing, provided Addvalue complies with all relevant SGX listing requirements and guidelines.
• Potential Internal Restructuring: The Company may carry out an internal restructuring, grouping AVS and related entities under a newly-incorporated investment holding company (“Listing Holdco”), whose shares would then be listed on NASDAQ.
• Retained Control: Addvalue intends to retain a controlling interest of at least 51% in the Listing Holdco after the completion of the IPO.
• Other Business Divisions Remain: Other business divisions—including Advance Digital Radio (ADR), Satcom Connectivity (STC), and Strategic Design Services (SDS)—will remain under Addvalue Technologies and will not be included in the U.S. listing.

Important Information for Shareholders

• Shareholder Approval Required: The proposed spin-off listing is subject to approval by Addvalue shareholders. The company will convene an extraordinary general meeting (EGM) to seek shareholder consent.
• Market Uncertainty: The proposed listing is in preliminary stages and subject to market conditions, regulatory approvals, and the results of preparatory work. There is no assurance that the spin-off or listing will ultimately proceed or be completed.
• Listing Status Unchanged: Addvalue Technologies Ltd. will remain listed on the Singapore Exchange Mainboard even after the proposed spin-off.
• Potential Value Unlocking: If successful, the spin-off could unlock value for shareholders by allowing the IDRS business to be independently valued and funded, and by potentially attracting new U.S. investors.
• Price Sensitivity: The outcome of the spin-off, including the proportion of shares offered and the valuation on NASDAQ, could have a significant impact on Addvalue Technologies’ share price. Investors should monitor developments closely.

Next Steps and Cautions

The company has not yet submitted any formal listing application to regulatory authorities in the U.S. and will make further announcements as material developments occur. Shareholders are advised to exercise caution when dealing in Addvalue shares and to consult their professional advisers if they are in doubt about their investment actions.

Conclusion

The proposed spin-off and NASDAQ listing of Addvalue Solutions represents a potentially price-sensitive and strategic move aimed at unlocking the value of Addvalue’s space connectivity business. The transaction, if successful, may significantly impact Addvalue’s business focus, financial structure, and shareholder value. Investors should stay updated as the proposal progresses through regulatory and shareholder approvals.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should consult their professional advisers before making any investment decisions. The proposed spin-off listing is subject to regulatory and shareholder approvals and may not be completed. Future developments may materially alter the outlook described herein.

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