Tuan Sing unit to sell 13% stake in printed circuit board maker for 435m yuan
TUAN Sing Holdings' 44.5 per cent-owned associated company Gultech China has agreed to sell 13 per cent of the shares it holds in a printed circuit board (PCB) supplier, which is evaluating a possible listing in China.
The transaction price of 435 million yuan (S$89 million) implies a valuation of about 3.35 billion yuan for the PCB firm, Gultech (Jiangsu) Electronics (GJE), T24 said in a filing released on Sunday.
The mainboard-listed real estate company added that the stake sale, expected to complete by July 31, 2021, will allow the group to monetise part of its "long-standing" investment in GJE.
"The transaction is in line with our plans to strengthen (our) balance sheet and sharpen our focus on our core property business in the region," said Tuan Sing chief executive William Liem. The group has interests mainly in property development, property investment and hotel ownership.
It also noted that the two buyers of the GJE shares - China-based private equity groups Yonghua Capital and Wens Capital - are investors with proven track records in the pre-initial public offering space.
The deal comes as GJE is undergoing a strategic review of its business, including the possibility of a potential listing on a stock exchange in China.
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Tuan Sing's wholly-owned subsidiary TS Technologies owns 44.5 per cent of Gul Technologies Singapore (Gultech Singapore), which delisted from the Singapore bourse's mainboard in 2013 and moved its PCB manufacturing operations to China.
Gultech Singapore wholly owns Gultech China, which in turn wholly owns GJE. GJE services multinational customers across the automotive, computer peripherals, consumer electronics, telecommunications, healthcare, and instrument and control sectors. In 2020, GJE reported net profit of about US$42.6 million, Tuan Sing said.
Yonghua Capital is part of the Yongjin Group, which has nearly 400 billion yuan in assets under management, according to the latter's website.
Wens Capital is the investment arm of Shenzhen-listed livestock and poultry farming company Wens Foodstuffs Group. Its portfolio includes early-stage, growth and pre-IPO companies.
Tuan Sing will continue to explore opportunities for potential collaborations with the two private-equity investors to broaden and deepen its presence in China, as it leverages both funds' "extensive institutional knowledge and local network" in the country, Mr Liem said.
There is no certainty or assurance that the potential stake sale and other matters contemplated in the announcement will be completed, Tuan Sing noted.
Shares of Tuan Sing finished flat at 37.5 Singapore cents on Friday.
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