The shares are currently held as investment and do not generate any income or revenue for FY2024
[SINGAPORE] Technology provider Trek 2000 International announced on Thursday (Jul 17) that it will be disposing of its 4.3 per cent stake in Terrenus Energy back to the renewable energy solutions provider, with the net proceeds to be around S$8.2 million.
The group intends to use the proceeds towards the general working capital requirements, indicated its Thursday bourse filing.
The board holds the view that the proposed disposal is in the best interests of the group and its shareholders, as it will enable Trek 2000 to realise the value of the sale shares.
The book value of the sale shares is US$400,000, based on the audited consolidated full-year financial statements ended Dec 31, 2024, compared with the group’s net asset value of around US$29.6 million.
In addition, there is an excess of about US$5 million of the sale consideration over the book value, based on the initial cost of investment of the sale shares of US$1.5 million.
Trek 2000 said that the sale shares are currently held as investment and did not generate any income or revenue for FY2024. It has noted a net loss attributed to the assets disposed for Terrenus Energy at S$16.5 million for FY2024. Trek 2000’s share of net loss stands at S$716,000.
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Terrenus Energy is incorporated in Singapore and has operations which span across the Asia-Pacific, including Singapore, Australia and China.
In Singapore, it secured its first solar project in 2018 with JTC Corporation to build Singapore’s first solar farm on Jurong Island.
Additionally, it has solar projects with other organisations in Singapore such as Facebook and the Housing Development Board.
As at the date of the announcement, Trek 2000’s market capitalisation stands at S$34.3 million.
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