Sichuan Mianzhu Norwest Phosphate Chemical Co, a subsidiary of AsiaPhos 5WV 0.00% , has received a settlement agreement of RMB106,225.70 ($19,831) from Almamet Shanxi Reagents Co on March 25.

 

In April 2023, a fire broke out at a Tianjin Xiaochun Logistics Co warehouse where both Sichuan Mianzhu and Almamet stored inventory, resulting in an inventory write-off for Sichuan Mianzhu.

 

In November last year, the AsiaPhos subsidiary filed a compensation claim against Almamet for losses and related expenses totalling RMB199,965.

 

Sichuan Mianzhu subsequently received a counterclaim of RMB14,043 filed by Tianjin Xiaochun in relation to storage fees at the same warehouse where the fire occurred.

 

Both the compensation claim and counterclaim were discussed at a court hearing on Nov 29, 2023.

 

On Feb 1, the People' s Procuratorate of Dongli District, Tianjin, issued the &ldquo Decision Not to Prosecute&rdquo but held that Almamet was liable for the economic losses which resulted from the Tianjing Xiaochun warehouse fire.

 

Tianjin Xiaochun and Almamet later reached an agreement with Sichuan Mianzhu for the subsidiary not to hold Tianjin Xiaochun liable for the losses. In return, Tianjin Xiaochun would give up its legal claim against Sichuan Mianzhu.

 

The settlement will be recorded as other income in AsiaPhos&rsquo financial statements for the FY2024 ending Dec 31. It is not expected to have any material impact on the earnings per share or the net tangible assets per share of the company for FY2024.

AsiaPhos Limited has notified Global Resources England that its proposed acquisition of Global Resources SP (Taiwan) for US$3.5 million ($4.7 million) requires an extension of time for transaction documents to be finalised.

 

Global Resources SP (Taiwan) owns 76.59% of Helio Energy Two Corporation, a Taiwan-based solar assets owner and operator whose primary business activities are those of renewable energy development and solar asset management.

 

In a bourse filing on SGX on Nov 20, AsiaPhos announced that it had entered into an extension letter with Global Resources England to vary and amend the non-binding term sheet set out on Oct 9.

 

The transaction documents were initially scheduled to be executed on or before Nov 17.

 

With the extension letter, the termination date for the term sheet has been extended to Dec 31, with an agreed target date to complete the transaction extended between January 31, 2024 and Feb 28, 2024. 

 

AsiaPhos has reminded shareholders that the Term Sheet is non-binding and the proposed acquisition is subject to numerous conditions and further due diligence, including the entry into transaction documents. 

 

As such, there is no assurance that the parties will be able to complete the proposed acquisition, says the company. &ldquo Shareholders are therefore asked to exercise caution when dealing in the shares of the company and should consult their legal, financial, tax and other professional advisers if they have any doubt as to the action to take.&rdquo

 

In separate profit guidances released on Nov 6, AsiaPhos 5WV 12.5% and CSC Holdings say they expect to report lower net losses for their 3QFY2023 ended Sep 30 and 1HFY2024 ended Sep 30, respectively.

 

For AsiaPhos, the lower net loss for the period compared to 3QFY2022 is attributable to lower general and administrative expenses from reduced depreciation and amortisation expense. The chemicals company also saw higher profit during the period from discontinued operations relating to rental income for its P4 plant.

 

The company expects to report its results for 3QFY2023 on or before Nov 14.

 

Meanwhile, CSC says it expects to report a &ldquo much lower&rdquo net loss for its 1HFY2024 compared to the corresponding period last year. 

 

The lower net loss for the period is mainly due to an increase in revenue arising from a higher level of construction activity in Singapore and Malaysia. 

 

CSC expects to report its results for 1HFY2024 on or before Nov 15.

 

AsiaPhos plans to acquire a Taiwan-based business Global Resources SP (Taiwan) for US$3.5 million, and will be launching a fund-raising exercise to pay for this deal.

 

The seller is Global Resources England, which is a subsidiary of Solar Plus (HK).

 

According to AsiaPhos 5WV 0.00% , the target owns 76.59% of Helio Energy Two Corporation, a Taiwan-based solar assets owner and operator whose primary business activities are those of renewable energy development and solar asset management.

 

For years, AsiaPhos, led by executive director Ong Hien Eng, was in the mining of phosphate in China but local authorities have disrupted that.

 

The company says it is trying to renegotiate the mining rights but " any outcome as a result of such discussions or arbitration or appeals as part of the legal process may take some time and may require substantial funding," the company says.

 

As such, the planned acquisition of the Taiwan solar assets is deemed to be in line with AsiaPhos' diversification and expansion plans " into a more long-term and sustainable business area," the company says.