CSE Global sells stake in diesel engine unit for S$15.47 million

AUTOMATION and telecom solutions provider CSE Global is selling its 66 per cent stake in a diesel engine subsidiary for S$15.47 million in cash, more than twice the amount it bought the latter for.

Its stake in Power Diesel Engineering will be sold to IMR Power, it said in a Singapore Exchange (SGX) filing on Friday.

CSE said the disposal would let it focus on its process controls and communication and security businesses.

The net sale proceeds of about S$10.96 million are roughly S$2.2 million more than Power Diesel's book value of S$8.76 million, CSE said, adding that it achieved an internal rate of return of around 40 per cent on its investment in Power Diesel.

CSE bought the 66 per cent stake in Power Diesel in late 2012 for S$6.27 million, according to an earlier SGX filing.

Its shares closed flat at S$0.585 on Friday.