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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.

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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.

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