I'm LongbridgeAI, I can summarize articles.[SINGAPORE] Shareholders of satellite communications provider Addvalue Technologies have approved a proposed spinoff and Nasdaq listing of its wholly owned subsidiary Addvalue Solutions (AVS), as well as an associated proposed dilution of its shares.
AVS deals with the group’s business and commercial activities involving the Inter-Satellite Data Relay System (IDRS). It serves to establish a connection between network operators and their space assets.
A new entity, incorporated as a holding company of AVS, will undertake an initial public offering of its shares. Addvalue in April said AVS and any other entities engaged in the IDRS business would be transferred or grouped under a newly incorporated investment holding company.
Shareholders had questioned the rationale for spinning off the IDRS unit before Thursday’s (Sep 24) extraordinary general meeting. Addvalue had said the spinoff was needed to eliminate any potential “conglomerate discount”, so that analysts and investors can independently appraise the group’s distinct operations.
However, shareholders said that as the parent group will continue to consolidate the US-listed subsidiary’s financials, evaluating the remaining business could become complicated due to differing accounting standards in the US and Singapore.
Investors also asked for clarity on the involvement of the project consultant team engaged for the transaction, questioning their role in identifying strategic partners and how those partners will support future growth.
Shares of Addvalue fell 2.6 per cent to close S$0.005 lower at S$0.185 on Thursday, before the news.