E Street Capital Pte. Ltd. agreed to acquire 17% stake in Pristine Islands Investment Pte. Ltd. from BRC Asia Limited (SGX:BEC) for $1.3 million on December 29, 2023.

Pristine Islands reported book value of -$72.8 million and net loss of $10.8 million for year ending September 30, 2023. The transaction is conditional on The Hongkong and Shanghai Banking Corporation Limited, Singapore branch irrevocably and unconditionally discharging BRC Asia from all obligations under the corporate guarantee in connection with a facility extended to Pristine by various banks, settlement agreement being entered between BRC and parties in relation to settlement of the potential disputes, BRC and E Street into the transfer/assignment/novation instrument in respect of the Sale Loan, application and exhaustion of the right of first refusal and the tag-along right, completion of due diligence and refinancing by E Street's financer of the loans extended to Pristine. All the conditions are to be fulfilled on or before March 31, 2024.

The net cash proceeds from the disposal will be used for working capital purposes. The transaction is accretive to NTA, net profit and EPS of BRC.