SMI Vantage (SGX:Y45) will unwind its acquisition of a 51% stake in Provino Logistics, following its delisting notice from the Singapore Exchange (SGX), according to a Friday filing on the local bourse.

The company had acquired 255,000 ordinary shares in Provino for SG$1.7 million in March 2024, comprising a cash payment of SG$520,200 and the issuance of 25.3 million new shares.

Under the unwinding, SMI Vantage will return its stake in Provino to the original sellers, who will refund the initial SG$260,100 cash payment. The remaining deferred cash obligation of SG$260,100 will be canceled, and the company aims to recover the issued shares.

SMI Vantage cited difficulties in expanding Provino's logistics business due to its inability to raise capital without a listing.

The company is working with advisers on how to retrieve the 25.3 million shares, including options such as a selective share buyback or capital reduction, which would require shareholder approval.

The company expects to record a net gain on the disposal of Provino, based on the firm's latest net asset valuation.