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Silverlake sells two million shares in Global InfoTech Co for 23.6 million yuan

SILVERLAKE Axis has sold two million shares of Global InfoTech Co (GIT) on the secondary market of the Shenzhen Stock Exchange for 23.6 million yuan (S$4.8 million), or 11.75 yuan apiece.

The sale was carried out on Jan 11, the software provider to financial institutions told the Singapore Exchange in a filing on Monday.

The net asset value attributable to the sale shares was 20.95 million yuan, based on the weighted average price of GIT's shares of 10.43 yuan per share on Jan 10, the date before the disposal, Silverlake said.

The company now has 39.59 million remaining shares in GIT.

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GIT, which is listed on Shenzhen Stock Exchange's ChiNext, provides financial information software products and integrated services in China. It also offers cloud computing and data centre solutions, and business consulting and information technology management services.

Referring to an earlier announcement in March last year on its plans to sell up to 19 million GIT shares, Silverlake said that it intends to monetise the investment in GIT progressively.

GIT had ceased to be an associate of Silverlake on March 29, and Silverlake's remaining 41.6 million shares in GIT was marked-to-market at 14.39 yuan per share, with an accounting gain of RM294.79 million (S$98.4 million) recognised in fiscal year 2017.

Based on the weighted average price of GIT's shares from May 3, 2017 to Jan 10, 2018 (there were no trades on GIT's shares from March 29, 2017 to May 2, 2017) of 10.49 yuan per share, and the lowest closing price of 8.67 yuan on June 2, 2017, Silverlake believes that the average disposal price of 11.75 yuan per sale share is favourable, compared with GIT's share performance since March 29, 2017.

Silverlake said that it plans to use proceeds from the disposal for general working capital purposes, special dividends, the reduction of borrowings and/or other business opportunities as and when they arise.

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