You are here
Amtek shares jump 8.2% after stake sale report
[SINGAPORE] Shares of mainboard-listed Amtek Engineering rose as much as 8.2 per cent to 73 cents on Monday moring, their highest in more than 2 weeks, after Bloomberg News reported on Friday that CVC Capital Partners and Standard Chartered Private Equity are exploring the sale of their majority stake in company.
Standard Chartered and CVC hold a combined 58 per cent in Amtek,valued at US$212 million at close of trading on Friday.
Amtek, maker of components for Tesla Motors Inc, was not immediately reachable for a comment. CVC Capital did not immediately respond to an email seeking comment, while Standard Chartered declined to comment.
Amtek, which renamed itself Interplex Holdings Ltd. on Friday after a subsidiary it acquired last year, is looking to markets outside Asia as its majority shareholders consider a possible divestment.
It will focus on Latin America and Europe as growth in China slows, while boosting research and development services, its chief executive officer Daniel Yeong told Bloomberg News in an interview out on Friday.
Interplex's Mexico factory will pave the way for expansion into South America. "We have already signed contracts for 2016 and 2017 to build some of our products there," Mr Yeong said. "These are markets that we have never done business with." The company will attract a lot of buyers if CVC and Standard Chartered want to sell because of its growth prospects, Mr Yeong said. Profit surged more than fivefold in the three months ended March with contributions from Interplex and as it became more efficient, the company said.