Link: https://links.sgx.com/1.0.0/corporate-announcements/ZVDW1N2XH1MBPATV/db7078834abc5b6c545cb809c610b2fdc01c12b9c80156982970c37196a86183

Summary:

• Creative Technology is divesting its Super X-Fi business (IP and inventory) to a new company, Zeica Labs Pte. Ltd. (“Spin-Off Entity”), in exchange for cash and a 40% equity interest.

• The consideration totals US$5.0 million: US$1.0 million cash (to be paid in 10 monthly instalments) and 40% equity interest in the Spin-Off Entity (anchored on an initial US$10 million valuation/funding round).

• Spin-Off Entity is led by the manager of Creative’s Super X-Fi business and is focused on spatial audio solutions using proprietary technology and AI-driven personalization.

• Transaction aligns with Creative’s strategy to streamline operations, unlock value from its intellectual property, and enable the spin-off company to operate with greater agility.

• Group expects to recognize a net gain of about US$3.0 million on the disposal.

• Financial effects (illustrative): Net tangible assets per share rise from US$0.58 to US$0.63; loss per share narrows from US$0.15 to US$0.11.

• No significant director or shareholder interests involved; completion expected by December 2025, subject to customary closing conditions.

• Proceeds will be used for general corporate purposes and working capital.