VibroPower Announces Major Disposal of Tuas Avenue Property for S$3.93 Million Pending Shareholder Approval

VibroPower Proposes Major Disposal of Tuas Property for S\$3.93 Million

Key Highlights

Proposed Disposal: VibroPower Corporation Limited, through its subsidiary VibroPower Pte Ltd, has granted an option to purchase its property located at 11 Tuas Avenue 16, Singapore 638929 to Ecorecycling Pte. Ltd. for a total consideration of S\$3,930,000.
Major Transaction Status: The disposal is classified as a “major transaction” under SGX Listing Rules, as the aggregate value of the consideration is more than 20% of the Group’s market capitalisation and net asset value. Shareholders’ approval is required at an upcoming EGM.
Strategic Rationale: The property is a non-core asset, primarily leased out and not used for the Group’s core operations. The sale is expected to unlock significant value and strengthen the Group’s balance sheet.
Financial Impact: The net proceeds of approximately S\$3.79 million are to be used for working capital, repayment of borrowings, and business growth investments. The disposal is expected to result in a substantial gain of S\$3.28 million.
Valuation & Consideration: The independent valuation placed the property at S\$4.2 million as of 31 March 2026. The agreed price represents a 6.4% discount due to the short remaining lease tenure (about 9 years).
Share Price Sensitivity: The sale price exceeds the current market capitalisation of the Group and represents over 60% of the Group’s net assets—a material development for shareholders.

Detailed Overview

Transaction Structure and Terms

The option to purchase was granted on 12 June 2026 to Ecorecycling Pte. Ltd., a third-party purchaser unrelated to the Group.
The property is held on a leasehold from JTC, with approximately 9 years remaining as of the announcement date. The site covers about 3,500 sqm and is currently partially leased to a tenant for office, storage, and fabrication use. VibroPower only uses the upper levels for document storage.
The option is exercisable by the purchaser until 26 June 2026. If not exercised by then, the option lapses and the S\$39,300 option money is forfeited.
Payment terms are as follows:
- 1% option money (S\$39,300) on grant;
- Another S\$157,200 (5% less option money) upon exercise;
- Balance (95%) payable at completion.
- GST is payable on top of the price.
Completion is subject to shareholders’ approval, JTC and NEA approvals (including change of use to “Processing of raw wood material into woodchips for biomass fuel usage”), and no outstanding compliance issues with JTC.
If JTC approvals are not obtained within six months of exercise (extendable by three months), the option may be rescinded with deposit treatment depending on fault.
Completion will occur on the later of 29 January 2027, six weeks after JTC approval, or six weeks after site decontamination (if required).
A pre-completion tenancy will be granted to the purchaser from 1 November 2026 at S\$10,600/month (subject to JTC and shareholders’ approvals). Liquidated damages are payable if vacant possession is delayed.

Strategic and Financial Rationale

The property is non-core and is no longer required following the Group’s operational outsourcing to Mason Industries, which provides shared office facilities adjacent to the property.
The disposal will unlock cash, bolster working capital (with a S\$35M order book to support), reduce debt, and provide funds for expansion.
The sale price is well above the book value (S\$502,000) and current market capitalisation (S\$2.95M), delivering a gain of approximately S\$3.28M.
Net tangible assets (NTA) per share will increase from 7.43 cents to 11.89 cents, and losses will narrow substantially from S\$3.86M to S\$0.57M for the prior financial year, based on pro forma calculations.

Key Points for Shareholders

Shareholders’ Vote Required: As the transaction is a major disposal, completion depends on shareholders’ approval at an EGM.
SGX Waiver: VibroPower obtained a waiver from SGX to allow the option to be granted prior to shareholders’ approval due to market practice and the need to secure a buyer for a depreciating lease asset.
Price Sensitivity: This transaction is highly material. The proceeds significantly exceed market cap and will transform the Group’s financials, making this a price-sensitive event.
No Change to Core Business: The disposal will not alter the Group’s business, which has shifted to an asset-light, outsourced model.
No Director/Shareholder Conflict: No director or controlling shareholder has any interest in the transaction.
Risks: The deal is subject to regulatory and shareholder approvals; there is no certainty of completion until all conditions are met.

Next Steps

VibroPower will issue a circular and convene an EGM for shareholders to vote on the disposal.
The option and valuation report are available for inspection at the company’s registered office.
Shareholders are advised to exercise caution and await further announcements and the EGM circular before making investment decisions.

Disclaimer

This article is for informational purposes only and does not constitute investment advice. Shareholders and potential investors should refer to official company announcements and consult professional advisors before making investment decisions. There is no certainty that the proposed transaction will be completed as it is subject to several conditions including regulatory and shareholder approvals.

维博动力（VibroPower）拟以393万新元出售大士工业地产，重大交易或影响股价

要点速览

拟议出售： 维博动力（VibroPower Corporation Limited）通过其子公司 VibroPower Pte Ltd，已向第三方非关联买家 Ecorecycling Pte. Ltd. 授予购买新加坡11 Tuas Avenue 16物业的购买权，总代价为393万新元。
重大交易： 由于出售金额超过公司市值和净资产的20%，本交易被归类为新交所重大交易，需经股东大会批准。
战略意义： 该物业为非核心资产，主要出租，不再服务集团核心业务。出售将释放大量现金，显著改善资产负债表。
财务影响： 预计净收益约378.6万新元，将用于营运资金、偿还贷款及业务扩展。预计一次性处置收益约328.4万新元。
估值与价格： 独立估值为420万新元，成交价因租赁期限短（仅余9年）而有6.4%折让。
股价敏感性： 出售价高于公司当前市值，超过集团净资产60%，属重大事项，或对股价有显著影响。

交易细节

购买权于2026年6月12日授予，买方为与集团无关联的 Ecorecycling Pte. Ltd.。
物业为JTC租赁地，仅剩约9年，面积约3,500平方米。目前一楼出租，集团仅用于上层办公文件存档。
购买权有效期至2026年6月26日，若届时未行使，购买权作废，订金归卖方所有。
付款结构：签约时付1%订金（39,300新元）、行权时付5%（扣除订金）、其余95%于完成时支付。买方需另付消费税。
成交须获股东大会同意、JTC和NEA批准（包括用途变更），并确保物业无不合规记录。
如JTC批准6个月内未获，可申请延长3个月，仍未获批则按责任退还订金或没收。
预计最迟于2027年1月29日或取得JTC批准6周后完成。
买方可于2026年11月1日起租物业，月租1.06万新元（需JTC及股东批准），若未如期交屋，卖方需赔偿实际损失。

战略与财务理由

物业为非核心资产，集团生产已外包至邻近的 Mason Industries，实现轻资产化经营。
处置将释放大量现金，支持3,500万新元在手订单，偿还贷款，并为扩张蓄力。
交易价格远高于账面价值（50.2万新元）和市值（294.7万新元），预计录得328.4万新元处置收益。
每股净有形资产将由7.43分提升至11.89分，年度亏损将大幅收窄。

股东需关注的事项

需股东投票： 重大交易须召开股东大会表决通过。
新交所豁免： 公司获准先授予购买权，以锁定买家，避免租赁资产因时间流逝贬值。
价格敏感： 交易金额巨大，料将显著改善公司财务结构，属股价敏感事件。
不改主营业务： 集团早已转向外包经营，出售后无业务实质变化。
无董事或主要股东利益冲突： 董事及控股股东均无利益关系。
风险提示： 交易需多项审批，最终能否完成存不确定性。

后续事项

公司将发出通函，召开股东大会表决。
购买权文件及估值报告可预约查阅。
建议股东谨慎操作，密切关注公司后续公告及大会通函。

免责声明

本文仅供信息参考，不构成投资建议。股东及潜在投资者请以公司正式公告为准，并咨询专业顾问后再作投资决策。交易尚需多项审批，能否最终完成存不确定性。