Saturday, 8 October 2016

Why REDtone used "auditor of last resort"? (2)

The issue why REDtone Asia uses an "auditor of last resort" (I wrote about this subject here) is soon not relevant anymore since REDtone announced it will sell its 92.31% stake in the company.

From The Edge:

REDtone International Bhd is selling its entire 92.31% stake in REDTone Asia Inc to Million Vision Development International Ltd for RMB38.31 million (RM23.78 million), to streamline and rationalise its operations including the divestment of non-income generating subsidiaries.

The telecommunication services provider said the disposal consideration is to be satisfied via two methods.

Firstly, the assumption of debt by the purchaser of a sum of RMB21.31 million (RM13.23 million) being amount owing by REDTone International to REDtone Asia and/or its subsidiaries; and secondly, the balance of RMB17 million (RM10.55 million) to be paid in cash.

REDTone International said its original cost of investment in REDtone Asia is about RM75.43 million, incurred since 2010.

As at July 31, the carrying value of REDtone Asia at the group is about RM16.82 million.

Million Vision was incorporated in Hong Kong as an investment holding company on April 28, 2016. Its present director and shareholder is Chan Wa Faat.

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