CDW unit disposes of Tomoike Electronics for 12.75m yuan

CDW Holding Limited on Friday announced its Chinese subsidiary has entered into an agreement on Jan 18 to dispose of its entire stake in Tomoike Electronics (Shanghai) Co Limited to a third party for 12.754 million yuan (S$2.62 million).

The sale of Tomoike Electronics, a limited liability company established in China, took into account the net book values of its assets, CDW said in a pre-market filing with the Singapore Exchange.

The sale by the group's unit Tomoike Industrial (HK) Limited comes on the back of CDW's efforts to consolidate its operations. This will see the business of Tomoike Electronics transferred to the group's other operating subsidiaries and become a non-operating entity by end of January 2018.

Tomoike Electronics's unaudited net book value and net tangible asset value as at Dec 31, 2017 stood at 16.216 million yuan with current assets of 20.112 million yuan and current liabilities of 3.895 million yuan.

The gain from the proposed sale amounts to US$1.112 million.

CDW said that compared with voluntary winding-up or liquidation, the proposed disposal would allow it to get back the funds from China to Hong Kong in a shorter period of time and in a more efficient manner for other investment opportunities.

CDW's board is of the view that this transaction would improve the performance of the group by reducing excessive overhead, it added.

The principal business activities of Tomoike Electronics are manufacturing and trading of parts and precision accessories for liquid crystal display module.

CDW shares were S$0.005 or two per cent higher at S$0.255 as at 1.26pm.