Metech disposes of wastewater management subsidiary

Benjamin Cher

Published Mon, May 23, 2022 · 10:52 PM

CATALIST-listed Metech : V3M 0% is disposing of its wastewater management subsidiary to focus on its lab-grown diamond business for S$618,000.

Its 60 per cent stake in Blufu Water (Xinmin) will be sold to the other shareholder Wang Daming who owns the remaining 40 per cent stake. Metech had originally purchased the 60 per cent stage at S$516,440 on Sept 21, 2021.

Blufu Water is involved in managing wastewater treatment plants owned by the government. With no plans to allocate resources to expand the wastewater business, the disposal will allow Metech to focus on its lab-growth diamond business and will not record a gain or loss on the disposal.

The disposal would increase Metech’s net tangible asset per share from S$0.0728 to S$0.0760 based on the consolidated financial statements for 6 months ended Dec 31, 2021. Loss per share would have also widened to S$0.09 from S$0.083 based on the same financial statements.