Hygrovest Limited (ASX:HGV) announcement overview

Hygrovest Limited (ASX:HGV) has entered into an agreement to sell its shares in Emerging Therapeutics Group Pty Ltd (ETG). The sale includes a cash consideration of $3.5m payable on 25 September 2024 and an additional amount of $0.3m payable 18 months after the initial payment. The total sale price represents a small discount to HGV's carrying value of the shares, which was $4m, and is significantly higher than the acquisition cost of approximately $700,000. The divestment was facilitated by HGV's asset manager, HD Capital Partners.

Executive Commentary on the divestment

The sale of HGV's investment in ETG marks a significant step in reshaping the company's portfolio. This move aligns with our strategy to transition towards a more diversified and liquid investment portfolio. We believe it is in the best interest of our shareholders and reflects our commitment to optimizing returns and managing risk effectively. We remain focused on identifying new opportunities that offer strong potential for capital growth and value creation.

Summary of Hygrovest Limited's divestment announcement

Hygrovest Limited (ASX:HGV) has announced the agreement to divest its shares in Emerging Therapeutics Group Pty Ltd (ETG) for a total consideration of $3.5m, with an additional payment of $0.3m scheduled 18 months after the initial transaction. The sale price, although slightly discounted from the carrying value, represents a favorable outcome compared to the acquisition cost. The divestment reflects HGV's strategic shift towards a more diversified and liquid investment portfolio. The company aims to continue identifying and pursuing opportunities that align with its goal of delivering sustainable capital growth for its shareholders.