Why Is Multistack Selling All Assets to Super Link and What’s Next?

Strategic Shift Amid Ongoing Losses

Multistack International Limited (ASX, MSI) has announced a significant strategic pivot, deciding to discontinue its current business operations which have been persistently loss-making. The company’s primary operating arm, Multistack Australia Pty Limited, focuses on marketing and distributing industrial air conditioning equipment, water chillers, Organic Rankine Cycle technologies, and heat exchangers. Despite these diverse activities, the business has struggled to achieve profitability.

After a thorough review, the Board concluded that continuing the business would require capital injections beyond the company’s capacity to raise. This financial reality has led to the decision to exit the current business model and transfer all assets and liabilities to Super Link Company Limited, a supplier already commercially connected to Multistack.

Details of the Proposed Transaction

The proposed deal involves Super Link acquiring all shares in Multistack Australia and other non-operating subsidiaries, effectively taking on the entire operating business and its liabilities. Given that Multistack’s liabilities exceed its assets, the transaction is structured with nominal consideration. In exchange, Super Link will forgive existing loans it and related entities have extended to Multistack, effectively cleaning the balance sheet.

This arrangement is designed to leave Multistack International Limited with a small net asset position, primarily cash, sufficient to meet statutory and ASX compliance obligations over the next 12 months. During this period, the company intends to seek new business opportunities to redefine its corporate direction.

Next Steps and Regulatory Compliance

The transaction remains subject to the completion of definitive legal documentation, shareholder approval, and an independent expert’s report to satisfy regulatory requirements under the Corporations Act and ASX Listing Rules. Meanwhile, Multistack will continue to operate prudently as a going concern and maintain full compliance with its reporting obligations.

The parties are targeting a completion timeline by late October 2025, signaling a relatively swift transition if approvals proceed as planned. This move marks a clear break from Multistack’s current industrial equipment focus and opens the door for a new chapter in the company’s evolution.