Adamas offloads Global Pharm Holdings at a loss

Pan-Asian diversified investment vehicle Adamas Finance Asia announced the disposal of its interest in Global Pharm Holdings Group on Friday.

The AIM-traded firm said the transaction was in line with its objective of maximising shareholder returns through a managed disposal programme of its legacy portfolio where commercially viable, and reinvesting the proceeds in pan-Asian income-producing assets with capital gain potential.

It confirmed that it entered into a sale and purchase agreement with Fortune Insight on Friday, for the sale of its 75% interest in Blazer Delight - through which it held its interest in Global Pharm - for $15.6m in cash, which was payable by Fortune within 120 days.

The group's interest in Global Pharm was transferred to Fortune at the same time.

In the event that Fortune did not meet its payment obligations under the agreement, Fortune would transfer the Global Pharm Interest back to Adamas for nil consideration, the board confirmed.

“We are pleased to have achieved the sale of the Global Pharm interest, which is in line with our objective of exiting the company's legacy assets where commercially viable and reinvesting the proceeds in pan-Asian income producing assets with capital growth potential,” said Suresh Withana of Harmony Capital, the recently appointed investment manager to Adamas.

“Although the sale is at a loss, the long-term beneficial impact to the Company from the sale of this investment, should be significant.”