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Cheung Woh Technologies eyes S$6m sale of underused Tuas head office

CHEUNG Woh Technologies is looking to sell its property at 23 Tuas South Street 1 in Singapore for S$6 million.

The mainboard-listed firm, which makes hard disk drives and precision metal-stamping parts, on Wednesday evening said it has signed a confirmation letter with the buyer, Yi Hui Metals, for the proposed deal.

The confirmation letter sets out in brief the principle terms of the transaction. It is subject to the detailed terms and conditions of an option to purchase, which Cheung Woh and Yi Hui Metals plan to formalise within the next two weeks.

Cheung Woh said the property is now used as a head office of the group. It was previously used for manufacturing activities, before the company relocated those activities to Malaysia.

Cheung Woh said it is of the view that the proposed sale is in the best interests of the company as the property is underutilised. It will also allow the company to realise the value of the property and improve the overall cash position of Cheung Woh.

The sale consideration of S$6 million took into account the valuation of the property and commercial factors including prevailing market conditions, location of the property and the comparison of recent transacted prices in the vicinity.

Shares of Cheung Woh last traded at 12.1 Singapore cents on Feb 20.