 Derek Goh, chairman of Serial System. NextInsight file photoSERIAL SYSTEM last night (May 27) said it sold its 31.878-million share stake in Jubilee Holdings to WE Holdings for S$7.71 million cash yesterday.
The sale price per share of S$0.242 is at a premium to:
>> the audited net tangible asset per share of Jubilee of S$0.147 as at 31 December 2013,
>> the closing price of Jubilee shares of S$0.125 as at 23 May 2014, and
>> Serial's average purchase price per share of Jubilee of S$0.188.
Serial had purchased its stake in two tranches in May and June 2013, which means it made a handsome return of 28.7% in a year.
As a result of the share disposal, it will record a gain of S$1,734,526, which amounts to 11.5% of the $15.1 million profit of Serial this year based on its 1Q profit being annualised.
Serial said it considered its Jubilee stake as a non-core asset, and is of the view that the disposal enabled it to realise returns on its investment.
Serial will deploy the cash from the share sale into its core businesses and/or utilise it for other business opportunities.
For more, see Serial's announcement.
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Toh Soon Huat sold his Jubilee stake to WE Holdings. He was previously chairman and CEO of Novena Holdings. NextInsight file photoAside from Serial’s stake in Jubilee, WE Holdings yesterday acquired shareholder Toh Soon Huat’s stake of 28,025,000 shares.
WE Holdings paid S$6,782,050 cash and issued 188,964,475 new shares to Mr Toh at an issue price of S$0.01323.
In all, WE Holdings paid S$14.5 million for a 25.5% stake in Jubilee to Serial and Mr Toh. Of the 25.5%, Serial contributed 13.6% and Mr Toh, 11.9%.
WE Holdings said the acquisition is in line with its efforts to expand its electronic components business.
Jubilee’s business shares a similar customer base with WE’s electronic components business that will allow WE to achieve business and operational synergy.
In particular, following the acquisition of the controlling stake in Jubilee, WE intends to work towards establishing a one-stop solution for customers by developing both the chip designed-in and the required plastic moulds, as well as explore other expansion opportunities together with Jubilee.
For more, see WE Holdings' announcement.
