Shinvest disposes of more Espressif Systems shares, to record S$3.3m gain

Shinvest BJW : BJW 0% announced on Friday that it has further disposed of 198,767 shares of China-based fabless semiconductor firm Espressif Systems.

Following the latest disposal of shares via auction trading on China Merchant Securities' online platform on July 8 at 252.61 yuan per share, the precision manufacturer said that it generated net cash proceeds of 50.2 million yuan (S$10.5 million).

The group expects to record a gain before tax of about S$3.3 million from the disposal based on its financial statements for the financial year ended Aug 31, 2020.

It also expects its pro forma net tangible assets to increase to 512.47 Singapore cents per share from 503.08 cents per share, and for its earnings per share to rise to 125.27 cents from 115.87 cents.

The move is in line with the company's circular to shareholders in September last year when the company said that it was "an opportune time to realise its investments" in Espressif.

Proceeds from the disposal will be used for general working capital purposes of the group and investment opportunities.

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As at July 8, the company has disposed of 1.1 million Espressif shares and currently holds 3.7 million shares.

This announcement comes after its earlier disposal of 245,491 shares in Espressif between June 28 and 30.

Shares of Shinvest were flat at S$3.25 as at 1.33pm.