Tuan Sing Holdings has sold a 13% stake in indirectly-held associate Gultech (Jiangsu) Electronics for RMB435 million. On top of this transaction, Tuan Sing is weighing a potential IPO of Gultech in China.
This entity is held by Tuan Sing via a 44.5%-owned associate. At the transacted price, Gultech, which makes printed circuit boards, is valued at RMB3.35 billion.
“The transaction is in line with our plans to strengthen balance sheet and sharpen our focus on our core property business in the region,” says Tuan Sing CEO William Liem.
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The buyers are two China-based asset managers: Yonghua Capital and Wens Capital. Their respective parent entities are the Yongjin Group and Wens Foodstuffs Group.
“Beyond our common ownership in Gultech, we will continue to explore opportunities for potential collaborations to broaden and deepen our presence in China as we leverage on the funds’ extensive institutional knowledge and local network in China,” says Liem.
According to Tuan Sing, the deal is meant to help monetise its long-held investment in Gultech, which was privatised in 2013.
For the financial year ended 31 December 2020, Gultech reported earnings of U$42.6 million ($58.8 million).
Tuan Sing closed April 30 unchanged at 38 cents.
