SINGAPORE - Mainboard-listed Datapulse Technology said on Wednesday (Jan 24) it is proposing to give out a special cash dividend of 1 Singapore cent per share from the disposal of its Tai Seng factory, which will result in a gain of approximately S$44.6 million.
The sale of the property at 15A Tai Seng Drive is expected to complete on Jan 31. Its sale comes as the firm is seeking to diversify its business to include multi-industry investments.
The data media storage maker said it is expecting to receive net sale proceeds of about S$52.9 million from the disposal, before the payment of the proposed special dividend The dividend payment however, is subject to final completion of the disposal and full regulatory approvals, as well as shareholders' approval at an extraordinary general meeting (EGM) to be convened, the company said.
According to Datapulse, the Tai Seng property has a 30-year lease tenure beginning Aug 16, 1993, with a further term of 30 years, and a gross floor area of about 15,174 sqm. The firm had used it to manufacture optical media products such as CDs, DVDs and Blu-Ray discs for its existing media storage business.
It added that it is currently in the midst of searching for alternative premises to relocate to and carry on its manufacturing activities, but has not found any suitable location as at Jan 24.
Datapulse also said that its change in business direction is being led by a new substantial shareholder, Ng Siew Hong. On Nov 22 last year, Ms Ng had completed the purchase of 63.53 million shares, representing about 29 per cent of the company's total issued share capital from former executive director Ng Cheow Chye. The two are not related.
The sale of the Tai Seng factory was approved by shareholders at an EGM in September last year before control of the company changed hands, as part of a planned relocation.
Earlier this month, Datapulse also said that it would call two EGMs by Feb 26, following a move by the family of former Datapulse chairman and co-founder to replace four directors on the company's board and re-evaluate the firm's diversification strategy.
The firm had in December received a requisition notice to convene an EGM from Ng Bie Tjin, the daughter of Datapulse's co-founder Ng Khim Guan, and Uniseraya Holdings. They have a combined stake of about 16 per cent in the company.