Sino Construction disposes of Malaysian subsidiary Elite Bay

SINGAPORE - Mainboard-listed Sino Construction has entered into a sale-and-purchase agreement on Tuesday to dispose of all its shares in its Malaysian construction subsidiary, Elite Bay, the company said in a filing with Singapore Exchange on Wednesday.

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.

It said the disposal, which has a total cash consideration of $100,000, is in line with its new strategy to expand into the energy resources sector.

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

The company said it will recognise a loss of $80,036.40 from the disposal, based on the unaudited consolidated financial results of the company for the first quarter of this year.