Zicom conducts demerger of subsidiary
Thursday, June 14 2012 - 06:49 AM WIB
Australia-listed firm Zicom Group Ltd. has conducted a demerger of its subsidiary Zicom Equipment Pte Ltd. (ZEPL) from PT Putra Dharma Harmoteknik (PDH), which it acquired in March 2011, as it had been adversely affected by losses from projects undertaken in Indonesia.
The company said in press statement on Thursday that the losses incurred from undertaking the projects were due to difficulties in integrating the engineering resources in Indonesia with those of ZEPL.
?In having reviewed the situation, we have concluded that to strengthen the management of our oil and gas activity going forward, a demerger of PDH is in the best interests of the Group. We have accordingly sold our entire interests to the other shareholder, the founder of PDH for a nominal sum of S$1.00. The loss resulting from the demerger will not have significant impact on the Group,? the company said in the press statement.
On 30 March 2011, Zicom Group Ltd announced that it had acquired 60% shares of the Jakarta-based PT Putra Dharma Harmoteknik for US$300,000 through its wholly owned subsidiary Zicom Equipment Pte Ltd. The investment was intended to consolidate cooperation and to develop an Indonesian based process engineering team to support the oil and gas activities of the Group, and to utilize PDH?s existing licenses to participate in oil and gas activities in Indonesia.
The Group is reorganizing its engineering management that will strongly focus on ownership and timely accountability to ensure losses experienced in integration are not repeated.
Notwithstanding the demerger, the Group?s relationship with PDH remains strong and shall continue to cooperate on mutually acceptable projects as was done before.
The Group is confident of its prospects in the oil and gas sector and believe its performance in the coming year shall improve.
The demerger does not impact on the profit guidance given for the full year ending 30 June 2012.
Editing by Benget Besalicto Tnb.