In February this year, the company's Malaysia-based JV Horizon Remit Sdn. Bhd. decided to wind up or its sale to any buyer. Al Jadeed Investment International based in Muscat, Sultanate of Oman, emerged as the potential buyer.
The said JV Company has not contributed to the turnover or revenue or income and net worth of the listed entity, except the share of the listed entity in loss reported by the said JV.
In the consolidated financial statements, Paul Merchants has recognised the share of its loss up to the cost of investment in said JV following Ind AS 28 which amounts to Rs 43.15 Lakhs as a result of which the value of the interest in JV is reflected at Rs. Nil. As per the financial statements of said JV, the total share of loss of the company during the year is Rs 76.82 Lakhs.
The stake sale is expected to complete by 31st July 2021 unless extended by the parties mutually. This is subject to the approval of the deal by Bank Negara Malaysia and the Reserve Bank of India.
The transaction involves - a Total Sale consideration of RM 5,60,000 for 80.576% shareholding, out of which RM 1,00,000 is payable immediately and the remaining RM 4,60,000 is payable at the time of closing i.e. after receipt of regulatory approvals.
At around 3.07 PM, Paul Merchants was trading at Rs1840 per piece down by Rs40.75 or 2.17% on Sensex.