EXCLUSIVE: TEAC Does About Face And Now Wants To Trade Again
Serious questions are being asked after the Board of TTA the owners of TEAC Australia did an about face and asked the ASX to end the suspension of its securities so that can renter the Australian market.
Back in May we revealed how struggling TTA Holdings the distributor of TEAC products in Australia, has moved to offload assets, in an effort to restructure their Australian operation at the time questions were raised as to whether the proposed course of action will get approved and whether, the acquisition of share is a move to establish a new Chinese funded legal network in Australia.
In a statement to the ASX the Company said that they are selling shares in TTA to Jingyi Group Co Limited, a Chinese equity fund so that TTI the holding Company, is no longer a shareholder in TTA.
They are also transferring ownership of a Victorian, freehold commercial property owned by their subsidiary, TEAC Australia Pty Ltd to TTA’s largest shareholder, TT International Limited.
In a statement to the ASX the Company said ‘Implementation of the proposed transactions was subject to a number of conditions, including a resolution approving the Proposed Transactions being passed by the requisite majority of scheme creditors of TT International Limited (TTI) (the largest shareholder of TTA).
As a result of this condition not being met the Directors claim that they intend to continue the business of its wholly owned subsidiary, TEAC Australia Pty Ltd and that they do not intend to provide a return of capital to its shareholder or do they intend to make any major changes to the business of TEAC, whether in respect of the redeployment of its assets or otherwise.
One of the assets was a multimillion dollar property in Melbourne which acted as the headquarters of TEAC Australia.
The Board of TTA has requested ASX to end the suspension of its securities from official quotation.
What’s not known is whether this was planned prior to the deal being announced.ade