WILLEMSTAD, Curacao, June 5, 2015 /PRNewswire/ -- Retail Holdings N.V. (Symbol: RHDGF)
Retail Holdings N.V. ("Retail Holdings", together with its subsidiaries and affiliates, the "Company"), announced today that the Company has sold, through the Stock Exchange of Thailand, its entire 40% equity stake in the Company's subsidiary, Singer Thailand Public Company Limited, ("Singer Thailand"), for approximately $44.8 million. Singer Thailand will continue to have a royalty bearing license from the Company to use the Singer brand. The net after tax profit from the sale is projected to be approximately $25.1 million, the net after tax and transaction expenses cash consideration will be approximately $43.4 million, in each case, 54.1% of which is attributable to the Retail Holdings' shareholders. This is equivalent to $2.57 per Share and $4.44 per Share, respectively.
Singer Thailand had revenue of approximately $105.6 million and attributable net income of approximately $1.9 million for the year ended December 31, 2014.
Commenting on the sale, Stephen H. Goodman, the Company's Chairman, President and CEO, noted, "I am pleased that the Company was able to sell its entire 40% stake in Singer Thailand to Thai investors on terms that are attractive to Retail Holdings' shareholders. While fully consistent with the Company's strategy to ultimately monetize the value of its assets, there is no immediate disposition plan for all of the Company's remaining assets. The sale reflects the unique circumstances of Singer Thailand: the Company only had a 40% stake compared to the very much larger, majority stakes in the Company's other operations, and Singer Thailand employs a very different, direct selling business model, as compared to the retail and wholesale business models employed elsewhere.
"No decision has yet been made as to the use of proceeds, which may include a distribution to shareholders (in addition to the $1.00 per Share previously suggested), share repurchases, and/or purchases of portions or all of some of the minority stakes in the Company's continuing subsidiaries."
About Retail Holdings
Retail Holdings holds three principal assets: 1) a 54.1% equity interest in Sewko/Singer Asia, a distributor of consumer durable products in Bangladesh, Cambodia, India, Pakistan and Sri Lanka, with consumer credit and other financial services; 2) seller notes, arising from the sale of the non-Asian sewing business and Singer trademark in 2004; and 3) cash and cash equivalents. The Company has no operating activities other than those carried out through Sewko/Singer Asia.
Additional financial and other information about the Company may be found at the Corporate/Investor section of the Company's website: www.retailholdings.com. Price quotations for the Company's Shares are available on the "Pink Sheets" quotation service under the symbol "RHDGF".
For further information, please contact Amy Pappas at (914) 241-3404.
SOURCE Retail Holdings N.V.