Shinvest to record S$2.8m gain from further disposal of Espressif Systems shares

BJW on Thursday said it has further disposed of 245,491 shares in China-based fabless semiconductor firm Espressif Systems.

The shares were put up for auction trading between June 28 and 30, on China Merchant Securities' online platform, at 225.15 yuan per share. It generated net cash proceeds of 55.2 million yuan (S$11.5 million) for the group, the precision manufacturer said.

The group said it will likely record a gain before tax of S$2.8 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 per share to rise to 510.97 Singapore cents from 503.08 cents, and its earnings per share to increase to 123.76 cents from 115.87 cents.

Shinvest currently holds 3.9 million shares in Espressif, after it disposed of a total of 927,667 ordinary shares. In September 2020, the group had said it was "an opportune time to realise its investments in Espressif" after it reviewed its investment portfolio.

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

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Shares in Shinvest were at S$3.06 at the midday break on Thursday, down S$0.14 or 4.4 per cent.

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