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Inactive Serial System unit to be sold for US$1 to joint-venture partner
ELECTRONIC parts distributor Serial System will have an inactive subsidiary sold to a joint-venture partner for a net loss of about US$2,000, the board announced on Friday night.
Serial Microelectronics (HK), Serial’s 91 per cent-owned Hong Kong unit, has entered an agreement to sell, for US$1 in cash, its 70 per cent stake in a group of companies that distributes semiconductor components for the automotive industry.
With the deal, minority shareholder CX Technology will consolidate its ownership of Xuanhong Automotive Electronics and a subsidiary. The Xuanhong group was inactive for the year to Dec 31, 2019 and has a net liability position of about US$51 as at Feb 29, 2020.
The value of the deal was reached after arm’s-length negotiations that took the group’s inactive status and its financial position into account, said Serial System.
The board added that the sale does not have a material impact on the group’s net tangible assets and earnings per share for the financial year ending Dec 31, 2020.
Serial System closed up last Friday by 0.2 Singapore cent, or 2.99 per cent, to 6.9 Singapore cents, on a cum-dividend basis.