JAKARTA, NNA - Japanese teleconference system provider V-cube Inc. has sold 95 percent of its holding in its Indonesian subsidiary, PT V-CUBE INDONESIA, which has remained in the red since it was founded seven years ago.
The shares were transferred to local internet company PT Altavindo Indonesia at a price of $1 effective Wednesday as V-CUBE INDONESIA was in excessive deficit, the Tokyo-listed company said in a statement.
V-CUBE INDONESIA has been providing visual communications services in Indonesia without becoming profitable since its establishment in July 2012.
The Japanese company’s stake in V-CUBE INDONESIA was reduced to 5 percent from 95 percent and it is expected to remove the Jakarta unit from the list of its consolidated subsidiaries after the July-September quarter, the statement said.
Altavindo Indonesia’s stake in V-CUBE INDONESIA rose from 5 percent to 95 percent after the share sale. Altavindo Indonesia was to take over the debts worth 127 million yen ($1.2 million) owed by the Jakarta unit to the parent company.
V-CUBE INDONESIA will continue to provide visual communications services in Indonesia as an agent for V-cube, the statement said.