EnGro Corporation S44 has disposed of its entire 40% equity interest in joint venture (JV) Tangshan Tanglong Materials for RMB40.8 million ($7.6 million).
On Jan 3, the company announced that the JV, which had an issued and paid-up share capital of RMB92 million, had been liquidated by way of members’ voluntary liquidation.
The book value and net tangible asset value of the JV at the time of its liquidation on Nov 30 was RMB102.0 million, consisting of pure cash, although no valuation was conducted.
Based on its 40% interest in the JV, EnGro recorded a loss on disposal of some $680,000.
The proceeds, consisting of a capital repatriation of RMB36.8 million and a profit distribution net of withholding tax of RMB4 million, were satisfied wholly in cash and will be used to fund the company’s general corporate and working capital needs.
Shares in EnGro closed unchanged at 75 cents on Jan 3.
