Advanced Systems Automation Limited Proposes Major Disposal of LSO Organization Holdings Pte. Ltd.

Key Points From the Announcement

• Major Transaction: Advanced Systems Automation Limited (“ASA” or the “Company”) has entered into a conditional sale and purchase agreement (“SPA”) with PT Sumber Mas Konstruksi Tbk (“Purchaser”) for the disposal of 100% of its wholly owned subsidiary, LSO Organization Holdings Pte. Ltd. (“Target”), for a consideration of up to S\$13,000,000, which will be satisfied by the issuance of new shares in the Purchaser, a company listed on the Indonesia Stock Exchange.
• Shareholder Approval Required: The disposal constitutes a “Major Transaction” under SGX Catalist Rules, requiring approval from ASA shareholders at an upcoming extraordinary general meeting (EGM). A circular with further details and a notice of EGM will be provided in due course.
• Structure and Assets Involved: The Target holds 50% of Lim Shrimp Organization Limited (BVI), which itself owns 100% of LSO Pacific Pte Ltd (Singapore) and Lim Shrimp Org Sdn Bhd (Malaysia). The Target Group is principally involved in aquaculture farm management and technology licensing.
• Financials of the Target Group: As of 30 June 2025, the Target Group showed net tangible liabilities of approximately S\$2.15 million and a net loss of S\$0.41 million for the half year ended June 2025.
• Valuation and Consideration: The consideration will be finalized based on an independent valuation report. The Consideration Shares, to be issued by the Purchaser, will be publicly traded, potentially providing ASA with liquidity and financial flexibility not available for private investments.
• Post-Completion Shareholding: Upon completion, ASA will retain a minimum of 10% shareholding interest in the Purchaser, giving it ongoing exposure to the Target Group’s business via a listed entity.
• Conditions Precedent: Completion is subject to several conditions, including regulatory approvals in Singapore and Indonesia, successful completion of the Purchaser’s rights issues, and approval from relevant corporate bodies and shareholders.
• Potential Financial Impact: The proposed disposal is expected to result in a significant improvement in ASA’s net tangible assets per share from negative (S\$0.80) to positive (S\$0.04), and a reduction in loss per share from (1.33) cents to (0.99) cents, based on illustrative pro forma financial effects for FY2024.
• Use of Proceeds: ASA intends to retain some Consideration Shares as a strategic investment and may dispose of others to repay debts, payables, and raise working capital.

Important Details and Price-Sensitive Information for Shareholders

• Major Transaction Status: The disposal is classified as a “Major Transaction” because the consideration represents 160.7% of ASA’s market capitalization as of 29 January 2026. This is a significant announcement that could materially affect share price due to the scale and strategic impact.
• Potential for Value Realization: ASA is disposing of a loss-making subsidiary, potentially crystallizing a gain of up to S\$15.15 million over the net liabilities of the Target Group. This may positively impact share valuation and investor sentiment.
• Exposure to Indonesian Listed Entity: ASA will hold a minimum 10% stake in the Purchaser, which may provide ongoing upside if the Purchaser successfully diversifies into aquaculture and benefits from the Target Group’s expertise.
• Liquidity and Monetization Potential: The Consideration Shares are publicly traded on the Indonesia Stock Exchange, increasing ASA’s ability to monetize its investment compared to holding private assets.
• Uncertainties: Final consideration, issue price, and share quantity are subject to independent valuation and market conditions. Completion is also dependent on the fulfillment of multiple regulatory and shareholder approvals, and there is no guarantee the transaction will complete as proposed.
• Directors’ Interests: Mr. Lim Chen Chong, a Non-Independent and Non-Executive Director, is an interested party due to his shareholding and directorship in the Target Group and Purchaser, and will abstain from making recommendations and voting on the transaction.
• Next Steps: ASA will issue further announcements and a circular with full details, including the independent valuation report, for shareholder review ahead of the EGM.

Summary and Implications for Investors

The proposed disposal of LSO Organization Holdings Pte. Ltd. represents a transformative transaction for Advanced Systems Automation Limited. Shareholders should note that this move is likely to have a material impact on ASA’s financial position, potentially reversing net tangible asset deficits and reducing losses. By exchanging a loss-making, privately held asset for liquid shares in a listed Indonesian entity, ASA could achieve both strategic flexibility and immediate financial improvement.

However, the transaction involves several uncertainties, including final valuation, regulatory and shareholder approvals, and market pricing for the Consideration Shares. Investors should monitor announcements closely and await detailed information in the forthcoming circular.

Disclaimer

This article is for informational purposes only and does not constitute investment advice or an offer to buy or sell securities. Investors should refer to official company announcements and consult professional advisors before making any investment decisions. The completion of the proposed disposal is subject to multiple conditions, and there is no guarantee that the transaction will proceed as described.

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