Union Steel Sells 30 Million Eneco Energy Shares for S$345K, Slight Accounting Loss as Company Monetises Investment for New Opportunities
Summary:
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Union Steel Holdings sold 30 million shares in Eneco Energy (1.21% stake) for S$345,000 via a married deal at S$0.0115 per share to independent investor Mr. Lim Kiao Bee.
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After the sale, Union Steel still holds 451 million shares (18.09% stake) and 500 million warrants in Eneco Energy (exercise price S$0.009, expiry August 2025).
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The deal was done on a willing-buyer willing-seller basis, referencing the 5-day VWAP of S$0.01.
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Sale proceeds are intended to be redeployed into other opportunities, with net cash proceeds of about S$343,000 after costs.
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Due to weighted average accounting, the sale results in a small book loss of S$8,000 even though it was above the market value based on the latest VWAP.
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Minimal impact on financials: NTA per share unchanged at 67.94 cents vs 67.95 cents before the sale; EPS also unaffected at 10.78 cents.
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Transaction was a non-discloseable under SGX Rule 1006, but disclosed voluntarily in line with good governance.
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None of the directors or controlling shareholders has any interest in the sale beyond indirect shareholdings.