Addvalue shareholders seek answers on spinoff of unit for Nasdaq listing

Shareholders of Addvalue Technologies have raised concerns about financial transparency and strategic investors in the proposed spinoff and Nasdaq listing of its wholly-owned subsidiary, Addvalue Solutions (AVS). The spinoff, first announced in April, aims to eliminate potential "conglomerate discount" and allow independent assessment of the group's distinct operations.

However, shareholders question whether this will truly benefit the parent company, given that the US-listed subsidiary's financials will continue to be consolidated. The company responded that the spinoff will provide greater visibility into the group's different businesses and that supplementary information on the remaining group will be considered post-listing, subject to regulatory requirements.

Shareholders also sought clarification on which business segment will record work for the spinoff group, like the development of IDRS terminals, and disclosed plans to appoint Addvalue Innovation for such work. The company will record revenue generated by Addvalue Innovation under the remaining group's relevant segment, with inter-company transactions eliminated upon consolidation.

Regarding the involvement of project consultant teams, Addvalue stated that they are targeting potential strategic investors with expertise in various industries and that no selection is guaranteed. The offer structure, IPO pricing, share volume, and total proceeds remain unfinalised, and the company cannot confirm strategic partner participation arrangements at this stage.