NSL to sell regional dry mix business for gross proceeds of S$159.8m

NSL Ltd, the former NatSteel Ltd, is exiting from its dry mix business in Singapore, Hong Kong and Malaysia in a move that will reap gross proceeds of about S$159.8 million.

In a filing with the Singapore Exchange on Saturday, NSL said that a conditional framework agreement has been inked for French-based Saint-Gobain Produits pour la Construction S.A.S (SGPPC ) to acquire the entire share capital of Emix Industry (S) Pte Ltd, Emix Industry (HK) Limited and Emix Industry (M) Sdn Bhd.

Emix industry (HK) also owns a number of subsidiaries - Emix (HK) Limited, Emix (China) Limited, Eastern Gotech (Guangzhou) Limited, and Emix Industry (Guangzhou) Ltd - as well as a 40 per cent stake in Yue Fung (China) Limited.

The consideration is S$142.6 million minus aggregate net debt, which comprises net debt of Emix Singapore and Emix Malaysia as well as 80 per cent of the net debt of Emix Industry HK and its subsidiaries.

NSL said that this proposed transaction is expected to "unlock substantial value in the Emix Business".

Based on the carrying value of NSL's dry mix division as at June 30, the proposed transaction will result in a gain on disposal of about S$107.6 million.

NSL's dry mix business in Singapore, Hong Kong and Malaysia was set up in 1984 and now operates seven manufacturing sites in three countries. The Emix business became a strategic business unit of NSL in 2012, led by a regional management group.

"NSL will continue to evaluate opportunities to use the proceeds received from the proposed transaction to maximise returns for shareholders," it said.