Centrepoint in Singapore litigation
Publicly-listed financial services firm, Centrepoint Alliance, has confirmed it is the subject of litigation in Singapore over a transaction which occurred in 2012.
The company, which is the parent of Professional Investment Services, announced to the Australian Securities Exchange (ASX) today that it had been served with a writ of summons and statement of claim filed in the High Court of Singapore by Aviva Asia Holdings Private Limited.
Professional Investment Services became a wholly-owned subsidiary of Centrepoint in 2010.
The announcement said that within the proceedings, Aviva Asia is alleging that the Centrepoint's former subsidiary company registered in Singapore, Fifth Floor Pte Ltd, had breached a warranty contained in a Share Purchase Agreement dated 7 August, 2012, relating to the sale by Fifth Floor to Aviva Asia of the shares in the company's former Singapore-based subsidiary, Professional Advisory Holdings Pty Ltd.
It said the company had provided a guarantee and indemnity in the agreement for any breach of the warranties provided by Fifth Floor.
The announcement said the proceedings by Aviva Asia alleged there had been a breach of the warranty that the audited annual report of Professional Advisory Holdings and Professional Advisory Services Pte Ltd for the year ended 30 June 2011 show "a true and fair view of the assets, liabilities and financial position and the state of affairs of the group" as at 30 June 2011.
It said the basis of the breach of Warranty related to an alleged over-statement of the accrued commission receivable balance in the accounts for the financial years 2009 and 2011.
The ASX announcement said that Aviva Asia was seeking relief in the sum of $988,037 Singapore dollars interest and costs.
Centrepoint has said it will defend the proceedings.
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