Monday, December, 05, 2022 01:52:17
SAIS Group announces potential sale of its luxury distribution business
SAIS Group, an advanced technology business solution provider, recently announced plans for strategic sale of its traditional luxury distribution business, Sarment, to strategic buys that include a group of controlling shareholders of the company. SAIS is expected to focus its resources on digital media & KADDRA technology, its AI-driven customer experience management platform. Sarment will continue its growth outside the group with KADDRA technology for its digital expansion, cites source.
Quentin Chiarugi, Chief Executive Officer, SAIS Group, was reportedly quoted saying that the company has been approached by a group of insiders & controlling shareholders regarding purchase of Sarment. A special committee has been established by the board of directors to review a potential sale & the transaction is subject to the committee’s recommendation.
The transaction will be constructive for both SAIS Group & its subsidiary Sarment, for their core businesses. By focusing on technological development, the company would be better able to work with dedicated structure and gain pace with many investors from the industry, provided KADDRA signs multiple projects in the coming weeks. Sarment already operates as an independent business and the company is expecting the transition to be smooth, Chiarugi added.
As per reliable sources, the terms of the potential transaction are unclear. Also, valuation & consideration are yet to be determined. It is probable that assumption of shareholder loan would partially or fully offset the purchase price. The potential transaction is expected to have a significant impact on the earnings in financial year 2019. For the company & its shareholders, a potential sale would provide an opportunity to increase shareholders’ value with increased management time and freeing up of resources. The move will allow the company to focus on KADDRA technology’s marketing and development of SME’s PRO version.
The senior executive team will remain the same and operate from SAIS Group’s headquarters in Singapore. The potential transaction would be subject to approvals, including regulatory, necessary shareholders & TSX Venture Exchange approvals.
Source credits: https://www.globenewswire.com/news-release/2019/05/30/1856792/0/en/Sarment-Holding-Limited-SAIS-Group-Announces-Potential-Strategic-Sale-of-Its-Traditional-Distribution-Business-to-Accelerate-Its-Technology-Expansion.html