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Sinjia Land selling mechanical components manufacturing units for over S$2m

CATALIST-LISTED Sinjia Land Limited is selling its integrated mechanical components manufacturing businesses to KH Investment Group Limited for more than S$2.38 million in cash.

In a Singapore Exchange filing on Sunday, the company said that its subsidiaries, HLN Rubber Products Pte Ltd, HLN Rubber Industries Sdn Bhd, PT HLN Batam and HLN (Suzhou) Rubber Products Co Ltd, which form the HLN Group, are being sold to Tay Kwong Hua.

KH Investment Group Limited is a company incorporated in the British Virgin Islands and is used as a vehicle for the purchase. It is wholly owned by Tay Kwong Hua, who is also the sole director of the company and is unrelated to any of the directors or substantial shareholders of Sinjia and their respective associates.

Upon completion of the proposed deal, the HLN Group will cease to be subsidiaries of the company.

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Sinjia said that the estimated net proceeds from the proposed sale, after deducting estimated expenses of approximately S$60,000, is about S$2.32 million plus the value of the fixed assets owned by the group. The value of the fixed assets will be determined by both sides following professional valuation.

The net proceeds are intended to be used for reinvestment into new businesses of the group when suitable opportunities arise in order to enhance shareholders' value, and for the group's general working capital as the directors may deem fit in their absolute discretion.

Based on the unaudited consolidated financial statements of the group for the first half 2017, the net tangible assets attributable to the sale shares as at June 30, 2017 amounted to about S$5.74 million.

Sinjia last traded at S$0.048 on Friday, down 0.2 Singapore cent, or 4 per cent.