SINGAPORE - Serial System has agreed to sell its entire 13.6 per cent stake in Catalist-listed Jubilee Industries Holdings to WE Holdings for $7.7 million.
The price works out to 24.2 cents a share, a handsome premium to the closing price of 12.5 cents as at May 23.
Serial System had bought the shares at an average price of 18.8 cents apiece.
The company said the board considered the sale as non-core assets, and is of the view that the disposal would enable it to realise returns on its investment in Jubilee, and also to avail itself of cash which can be deployed into its core businesses or utilised for other business opportunities.
Serial System intends to use the proceeds for general working capital purposes or other business opportunities as and when they arise or reduce borrowings.
Jubilee engages in mould design and fabrication and precision plastic injection moulding, and produces a range of precision plastic components typically used for customers in consumer electronics, computer peripherals, automotive and household appliances industries.