Multistack International to Sell Assets to Willing Y Limited and Seek New Business

Strategic Asset Sale and Business Discontinuation

Multistack International Limited (ASX:MSI) has announced an agreement in principle to sell all of its assets and liabilities to Willing Y Limited (WYL), a Hong Kong-based company focused on exporting air conditioning components from China and expanding into the Australian and New Zealand markets. This move follows MSI's ongoing commercial challenges, with the Board concluding that continuing the business in its current form is no longer viable without significant capital injection beyond the company's means.

The proposed transaction includes the sale of 100% of the shares in MSI's wholly owned subsidiary, Multistack Australia Pty Ltd, with WYL assuming the majority of MSI's liabilities. While a definitive legal agreement has yet to be signed, both parties have agreed in principle to the terms, subject to completion of formal documentation and necessary approvals.

Conditions and Timeline for Completion

The transaction remains contingent on several conditions precedent, including shareholder approval, an independent expert's report to comply with the Corporations Act and ASX Listing Rules, and any required regulatory consents. MSI intends to continue operating prudently as a going concern during this period and will maintain compliance with all ASX and reporting obligations.

The parties are targeting completion of the sale by the end of June 2026. Upon completion, MSI expects to hold a small net asset position, represented by an agreed cash amount to meet statutory liabilities over the following 12 months. During this time, the Board plans to explore new business opportunities for the company.

Context of Ongoing Financial Challenges

This announcement aligns with MSI's recent disclosures highlighting persistent operational losses and cash outflows. Despite a reported net profit of $2.26 million in 2025, this was largely driven by one-off settlement income rather than core business performance. The core trading entity continued to incur losses, prompting the Board's decision to discontinue the current business model and pursue disposal of its Australian subsidiary. MSI's cash reserves and liabilities have been under pressure, with prior reports noting a net operating cash outflow and the need to manage borrowings and related party loans carefully.

Investors following MSI's trajectory may recall the company's earlier moves to divest its Australian operations amid these financial strains, as detailed in the coverage of its $2.26 million profit masking core business struggles and strategic shift. This latest development represents a further step in MSI's strategic repositioning.