Addvalue Technologies, a provider of wireless and broadband communications solution, on Tuesday said it is exploring the possibility of spinning-off its subsidiary, Addvalue Solutions.
The spin-off of Addvalue Solutions (AVS), which houses and undertakes business relating to the Inter-satellite Data Relay System (IDRS), could either be through the distribution of a portion of its shares to the shareholders of Addvalue Technologies.
Addvalue Technologies also said it has been exploring the transfer of AVS listing status from the main board of the SGX-ST to SGX-ST Catalist since the introduction of the minimum trading price rule of 20 cents for main board listed companies.
In response to the company's application, the SGX has said that it does not consider the proposed spin-off and Catalist listing of Addvalue Technologies' subsidiary as a chain listing. However, this ruling is subjected to the company's compliance with the bourse's listing rules and shareholders' approval.
The company is finalising the terms of engagement of its advisers as well as the continuing sponsor for the transfer of its listing.
With regards to AVS's efforts to commercialise its IDRS business, Addvalue said it is now in the advanced stage of discussions with a few LEO satellite players to launch satellites that will "lead to the deployment of a multitude of IDRS terminals over the next few years".
Shares in Addvalue Technologies rose 2.4 percent to S$0.04 on the Singapore Exchange.
