SHANGHAI Yi Hsin Industry (SYH), a wholly owned subsidiary of watch-listed group Huan Hsin Holdings, is proposing to dispose of its entire equity interest in Shanghai Song Yi Industry (SSY) for 126.7 million yuan (S$26.7 million).
On Tuesday, SYH entered into a sale-and-purchase agreement with Sunny Science & Technology Corporation to sell off SSY - which owns the land use right over an area of 11,148 square metres located at Zhuan Qiao Town, Minhang District, Shanghai.
The latest sale-and-purchase agreement comes after a botched attempt to dispose of SSY to Shanghai Chenming Real Estate Development in September. The transaction was terminated as the latter did not pay the consideration by the stipulated deadline.
Huan Hsin - a notebook-casing producer that was placed on Singapore Exchange's watch-list in March following three consecutive years of losses - said: "As part of its turnaround strategy, the group is undertaking the proposed disposal to monetize its non-yielding assets and will use the proceeds . . . to increase its working capital."