Olympia sells stake in Singapore travel company

PETALING JAYA: Olympia Industries Bhd’s unit Olympia Ventures Sdn Bhd is disposing its 70% equity interest in Olympia Travels & Tours (Singapore) Pte Ltd (OTTS) to UK-based Global Mobility Investments Limited, in a complex deal which will require it to secure and service a S$1.75 million (RM5.43 million) loan for OTTS.

In a filing with Bursa Malaysia, the company said it would receive S$840,000 for the stake, be forwarded S$1.75 million fixed deposits of OTTS and an estimated S$1.20 million excess cash within 10 business days from the completion date on Jan 1, 2018 or such other date as agreed between the parties in writing.

A condition precedent for the deal however, would be for Olympia Venture to secure a financing facility from banks to replace the S$1.75 million fixed deposits from OTTS. As no liabilities are to be transferred to Global Mobility, it looks like Olympia Ventures will be servicing the loan taken.

Its original investment in the travel and tour agency in 1998 was RM1.31 million (S$654,642.00).

According to the same announcement, Olympia is set to gain RM2.78 million from the disposal, based on the latest audited financial statements of Olympia Group for the financial year ended Dec 31, 2016. The disposal is expected to be completed by first quarter of 2018.

The net proceeds from the deal is to be used as working capital for the company.

Olympia is principally involved in property investment and development, stockbroking, gaming, travel and tours and restaurant operations.

Olympia’s share price was unchanged at 13.5 sen with some 8.07 million shares changing hands.