The board of APA Financial Services (APP) has signed a preliminary agreement to sell its interest in Australian Portfolio Administrators (APA) to OneVue, the other shareholder of APA.
According to an Australian Securities Exchange (ASX) statement the sale is in exchange for cash and shares in Pentafin Wealth Systems (PWS), a major shareholder in OneVue.
The APP board believes that the approval, combined with the completion of an APA shares and rights issue or placement approval, will mean APP has a passive but significant equity interest in a company which has no borrowings and adequate capital to fund an expansion.
The approval will mean APP has cash reserves estimated to be more than $300,000 and it will also be in a position to consider future investment opportunities, the statement said.
The sale agreement is subject to approval from shareholders.
