13 Mar 2019 07:00
Walcom Group Ltd - Proposed Disposal of Walcom Bio-Chem (Thailand) CompanyWalcom Group Ltd - Proposed Disposal of Walcom Bio-Chem (Thailand) Company
PR Newswire
London, March 13
This announcement contains inside information as stipulated under the Market Abuse Regulations (EU) no. 596/2014 ("MAR")
13 March 2019
WALCOM GROUP LIMITED(“Walcom” or “the Company”)
Proposed Disposal of Walcom Bio-Chem (Thailand) Company Limited
Walcom announces it is in negotiations regarding the proposed disposal of its entire interest in its subsidiary Walcom Bio-Chem (Thailand) Company Limited (“Walcom Thailand”), to the General Manager of, and 40 per cent. shareholder in, Walcom Thailand (the “Proposed Disposal”). Walcom currently owns 55,000 shares in Walcom Thailand, representing 55 per cent. of Walcom Thailand’s issued share capital.
As announced previously, Walcom’s working capital position remains severely constrained. The board of the Company now believes that without further action, the Company may not be able to meet its liabilities as they fall due by the middle of April 2019. The directors of Walcom therefore believe that the Proposed Disposal is a necessary action to ease the Company’s immediate short-term working capital position. If the Proposed Disposal is completed, it is expected that the net proceeds of the disposal will be received prior to the middle of April 2019.
The Company continues to consider all other possible options to improve the Company’s working position.
The Proposed Disposal will be subject, inter alia, to the entering into and completion of a share purchase agreement. As such, there is no certainty that the Proposed Disposal will proceed nor any certainty regarding the terms on which it would proceed.
A further announcement will be made in due course.
Further enquiries:
| Walcom Group Limited Francis Chi (Chief Executive Officer) Albert Wong (Chief Financial Officer) | +852 2494 0133 |
| Allenby Capital Limited David Hart / Asha Chotai | +44 20 3328 5656 |