EXCLUSIVE: TEAC Sells Assets, Questions Asked, Legal Firm Links Exposed
Struggling TTA Holdings the distributor of TEAC products in Australia, has moved to offload assets, in an effort to restructure their Australian operation however questions are being 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.
They claim, that the TEAC Australia subsidiary has entered a contract of sale for the property with one Xiangyou Kong, for the sale of its freehold commercial property at Thomastown, Victoria for $3,200,000. A deposit of $320,000 has been paid, with the balance of $2,880,000 payable at settlement.
Xiangyou Kong is the managing director of Jingyi Group Limited who is also purchasing the shares in TTA.
Established in 1988, Guangzhou Jingyi Automobile Air Conditioner Co., Ltd, specializes in the production of automobile air conditioners, truck refrigerators and auto parts. The company is also a large-scale automobile air conditioner R&D and production centre in South China.
There is no mention as to whether the Company plans to continue operations in Australia after Harvey Norman decided to derange their products across their store network.
Three months ago, TST Partners Group Pty Ltd, a Melbourne based financial and legal services firm announced that it will list on the Australian Securities Exchange (ASX) in early 2017 by way of a reverse takeover.
They said at the time that they had recently entered an agreement with Shanghai based private equity firm Jingyi Group Co. Ltd (Jingyi Group) which is the same group now coming to the rescue of TEAC Australia Pty Ltd.
As part of the planned RTO, Jingyi Group entered a head of agreement to acquire the majority shareholding interests of a currently listed Australian company which is believed to be TTA Holdings.
Back in December TST Partners said that will enter a scrip for scrip transaction with the company to become a listed entity, once the deal is done they will pursue an expansionary agenda in 2017, which will involve the acquisition of several accounting and legal practices across Melbourne and other Australian capital cities.