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PREMIUM marble producer Terratech Group will no longer be a unit of Tritech Group, an engineering firm, and might also face potential changes to its current board and management after Tritech decided to sell a 29 per cent stake in the firm.
In an announcement late on Tuesday night, Tritech said it was selling the 29 per cent stake to Chew Hoe Soon, non-executive chairman of SHS Holdings, for S$12.5 million, or seven Singapore cents per share. SHS, formerly known as See Hup Seng, is also listed on Singapore Exchange.
Tritech said the deal would allow the group to unlock value in its marble resource business and maximise return to its shareholders.
It would also allow the group to re-allocate its financial and capital resources to focus on the expansion of its engineering services business and water-related and environmental business, as well as undertake new investment opportunities, it added.
The disposal of the unit is expected to give Tritech a net gain of about S$8.6 million after deducting the pro-forma net asset value of the sale share, fees and other costs.
Tritech owns about 62.92 per cent of Terratech. It also plans to divest its 33.9 per cent remaining stake in Terratech, though 31.46 per cent is subject to a moratorium until Jan 29.
In a separate announcement, Terratech said it will continue normal operations of the group in the midst of the proposed disposal, including obtaining financial support from Tritech or other parties for its operations and corporate growth strategy.