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ASF Group Buys Back 45% Stake In ASF Resources For $5.5M

ASF Group (ASX:AFA) has repurchased 81,818,182 fully paid ordinary shares, representing 45% in ASF Resources from Longluck Investments for A$5.5 million.

With the re-purchasing and cancellation of the 45% shares, ASF Group will no longer be required to demerge ASF Resources and list it as a separate entity.

After the share repurchase, ASF Group holds 89% and Yongbin International holds 11% of ASF Resources.

The consideration for the ASF Resources buy back was funded from internal available cash of ASF Resources, and the representatives of Longluck on the board of ASF Resources have already resigned.

As a result of the buy-back, the group is likely to book an accounting loss. The company may consider the potential demerger of ASF Resources in future.

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