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Huan Hsin sells 51 per cent stake in JV to partner
HUAN Hsin Holdings, a contract manufacturer of telecom and electronic products, is selling its 51 per cent stake in Hefei Baolong Hsin Technology for 6.19 million yuan (S$1.3 million) in cash.
Hefei Baolong Hsin Technology manufactures notebook casings, and the sale is being made to Huan Hsin's joint venture partner, Shenzhen Bitland Information Technology, which owns the remaining 49 per cent stake.
Shenzhen Bitland will pay Huan Hsin half of the consideration within seven days of the sale and purchase agreement signed on Dec 9, 40 per cent after six months, and the remaining 10 per cent after nine months from the agreement date.
Huan Hsin was placed on the Singapore Exchange's watchlist on March 5 this year after making losses for three consecutive years. The deal is part of its strategy to monetise its non-yielding assets.
Proceeds from the disposal will go towards increasing its working capital, it said.
The counter last closed at two Singapore cents on Dec 8.