Sino Construction disposes of Malaysian subsidiary Elite Bay

SINO Construction on Tuesday entered into a sale-and-purchase agreement to dispose of all its shares in its Malaysian construction subsidiary, Elite Bay, the group announced in a statement on Wednesday morning.

The group had purchased 60 per cent of the enlarged share capital of Elite Bay in January 2014 through its wholly owned subsidiary, SC Building & Construction Pte Ltd.

The disposal, which has a total cash consideration of S$100,000, is in line with Sino Construction's new strategy to expand into the energy resources sector, it said.

The group intends to use the proceeds from the disposal to fund the development of its micro power plant business.

Based on the unaudited consolidated financial results of the company for the first quarter of this year, the net tangible asset value attributable to the sales shares was S$230,436, which makes the deficit of the consideration over the net tangible asset of the sales shares S$130,436.

The company will recognise a loss of S$80,036.40 pursuant to the disposal, it said.

The counter last closed trading up 0.1 Singapore cent at S$0.035 on Tuesday.