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Jubilee Industries to sell 13.8% stake in EG Industries to CEO
CATALIST-LISTED Jubilee Industries plans to dispose of its 13.77 per cent stake in electronic manufacturing services firm EG Industries to chairman and chief executive officer Terence Tea Yeok Kian for S$5.37 million in cash, it said on Tuesday.
Mr Tea is also the group executive chairman of EG Industries, which is listed on Bursa Malaysia's Second Board.
The net sale proceeds is estimated to be S$5.3 million, and will give rise to an estimated net loss of around S$6 million over the book value of the EG sale shares of approximately S$11.3 million as at March 31.
The sale is subject to the completion of other transactions by parent company Accrelist, as well as approval from Jubilee shareholders. These include Accrelist disposing of a 17.5 per cent stake in Jubilee to EG Industries, as well as the proposed capital reduction and distribution in specie of Jubilee shares to the shareholders of Accrelist.
Jubilee said that the proposed disposal of its shares in EG Industries would improve the group's liquidity, fund its working-capital requirements and enable it to re-allocate resources to focus on stabilising and expanding its core businesses.
These include the mechanical business unit which carries out precision plastic injection moulding and mould design and fabrication services, as well as the electronics business unit which provides integrated electronic component distribution services and modular design fabrication.
Jubilee Industries shares rose 2.2 Singapore cents or 27.5 per cent to S$0.102 on Tuesday.