SINGAPORE- Former systems supplier WE Holdings will concentrate on its commodity businesses and Myanmar investments after its sells its electronics arm, said executive chairman Terence Tea on Monday.
The firm's transformation has been on the cards since Mr Tea took up his post in March last year.
He told The Straits Times: "Since Day One when I joined, I made it clear that I want to steer WE Holdings into [being] a commodities company."
He has earmarked coal, iron ore, cement and oil as the sectors WE Holdings should focus on.
In May, for instance, the Catalist-listed firm won an iron ore dal worth about US$1.7 million.
Many of its commodities investments are in areas like cement and petroleum in fast-growing Myanmar, which is seen by investors as the next high-growth market in light of the economic reforms that started in 2011.
WE Holdings said on Sunday that it will sell WE Components, for an undisclosed "mutually agreed sum" to fellow Catalist firm Jubilee Industries Holdings.
But WE Holdings will not be totally divorced from the electronics sector. It in fact holds 25.5 per cent of Jubilee - a stake it had bought in May for $14.5 million.
Mr Tea said his firm will retain the Jubilee stake and so some of its profits will go to WE Holdings.
Jubilee chairman Foo Say Tun said on Monday: "There was a good match and we felt there was synergy. We felt we'd give it a try and let's see if it will bear fruit."
Jubilee is also buying 26 per cent of EG Industries, Malaysia's largest electronic manufacturing services player. It will pay $8.4 million for the stake, said EG, Jubilee and WE Holdings in the Sunday announcement.