AEM Holdings has entered into a sale and purchase agreement to dispose of the company’s plating business in its unit AEM (Suzhou) Co to Jiangsu Yunyi Electric Co for an aggregate consideration of RMB6.63 mil.
AEM has determined that the plating business is unlikely to achieve significant enough scale to deliver shareholder value.
The plating business contributed approximately 2% of the group’s total revenue in 9M15 but recorded a net loss of $796,000 during this period.
The group recorded an unaudited net profit after tax of $1.22 million in 9M15 but would have reported a net profit of $2.02 million excluding the plating business.
As at Tuesday, the group’s business comprises providing customized equipment system solutions, high precision components and mechanical assemblies and plating services.
The group says the proposed disposal should not have any material negative effect on its remaining and future business operations as it already operates substantially independently from its other businesses.
Shares in AEM ended flat at 27 cents on Tuesday.
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AEM has determined that the plating business is unlikely to achieve significant enough scale to deliver shareholder value.
The plating business contributed approximately 2% of the group’s total revenue in 9M15 but recorded a net loss of $796,000 during this period.
The group recorded an unaudited net profit after tax of $1.22 million in 9M15 but would have reported a net profit of $2.02 million excluding the plating business.
As at Tuesday, the group’s business comprises providing customized equipment system solutions, high precision components and mechanical assemblies and plating services.
The group says the proposed disposal should not have any material negative effect on its remaining and future business operations as it already operates substantially independently from its other businesses.
Shares in AEM ended flat at 27 cents on Tuesday.
Click Here To Register For Free Trial Services OR Give A Missed Call : +6531581402 Follow Us On Twitter : www.twitter.com/epicresearchsg Like Us On Facebook : www.facebook.com/EpicResearchSingapore Need Any Assistance Feel Free To Mail Us at : info@epicresearch.sg
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