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GKE to divest wholly owned unit for 15m yuan

GKE Corporation has entered into a sale and purchase agreement to divest its wholly owned unit Ever Flourish Development (HK) Co, which in turn holds a 40 per cent stake in Maoming City Hung Ji Construction Materials Co, for 15 million yuan (S$3.3 million).

The group said it decided to divest Maoming to focus on wholly owned unit Wuzhou Xing Jian Ready-mix Co where it can exercise greater control and flexibility.

"Construction of our cement mixing factory is underway and we expect completion and commercialisation by end of 2015," said GKE's CEO Neo Cheow Hui.

The proposed divestment would result in a gain of S$1.2 million, which the group intends to use for working capital purposes.