ricky_a_2ct
Ricky Ang, MD of Elektromotive. NextInsight file photo

ELEKTROMOTIVE shareholders -- look out for a special dividend and share buyback action by the company.

It has announced these plans (but not details like when and how much) in a statement on Thursday (Dec 13) regarding its proposed divestment of a 55% stake in a UK subsidiary for S$10.8 million cash.

The planned dividend payout is notable as Elektromotive has not paid a dividend since 1999. That's some 14 years ago!

Neither has it done a share buyback in many years -- at least not in the past 5 years (which is how far back the SGX's public records show)

On the other hand, Elektromotive has done a rights issue, raising about S$5 million in the middle of this year from shareholders.

Chargemaster Plc is the buyer of the Elektromotive subsidiary, Elektromotive Ltd (EUK), one of the world’s leading providers of technology and engineering solutions for electric vehicle recharging stations.

The consideration of S$10.8 million for EUK represents 86.0% of Elektromotive Group’s market
capitalisation as of 12 December 2012.

As of 30 Sep 2012, the Group has borrowings of S$1.5 million. Following the completion of the transaction, the Group’s net cash position will exceed S$10.0 million.

And after the divestment, Elektromotive will receive a royalty-free license to use the legacy technologies and solutions already developed by EUK.

Under the licence, the Group is permitted to use certain EUK-related technologies in Asia and Australasia, excluding Japan.

Ricky Ang, MD of Elektromotive Group, commented, “With this proposed divestment, our war chest will be significantly strengthened for us to pursue electric vehicle-related business opportunities in various fast-growing Asian markets, particularly China.

"Asia as a whole contributed about one third of the global market in terms of electric vehicles and
electric recharging equipment in 2011. This contribution is set to grow given the strong emphasis by the Chinese government to encourage EV sales so as to reduce emissions and fossil fuel consumption."

For the press release, click here.

Recent story: ELEKTROMOTIVE: 5 Key Takeaways from Meeting with Vice Chairman

You may also be interested in:

  • images/stories/Gallant/gallant_lhs6.14.jpg GALLANT VENTURE: Surprise! Non-exec chairman sells 1.7 m shares
  • images/stories/Manwah/550_analyst_briefing.jpg MAN WAH: Surprise! Sales of sofa to US are booming!

    Comments  

    +1 #1 foo s y 2015-02-10 12:37
    Y keen to implement right issues when and how dividends ?????
    Quote

    Share Prices

    Counter NameLastChange
    AEM Holdings3.6600.090
    AusGroup0.023-0.001
    Avi-Tech Electronics0.445-
    Best World Int.1.360-
    CEI0.855-
    China Sunsine0.320-0.015
    CNMC GoldMine0.320-0.015
    CSE Global0.5100.030
    Food Empire0.510-0.010
    Golden Energy0.155-
    GSS Energy0.061-0.002
    ISDN Holdings0.2900.025
    ISOTeam0.142-0.002
    IX Biopharma0.2800.010
    JB Foods0.595-
    KSH Holdings0.330-0.015
    Medtecs Intl1.0100.110
    Moya Asia0.0720.013
    Nordic Group0.210-
    Oxley Holdings0.210-0.005
    Procurri0.295-0.005
    REX International0.181-0.001
    Riverstone3.9900.230
    Roxy-Pacific0.3250.005
    Sing Holdings0.370-
    SingMedical0.2600.005
    Straco Corp.0.470-
    Sunningdale Tech1.0400.030
    Sunpower Group0.4600.015
    The Trendlines0.1050.001
    Tiong Seng0.160-
    Uni-Asia Group0.470-0.020
    Yangzijiang Shipbldg0.895-0.020

    NextInsight RSS

    rss_2 NextInsight - Latest News

    Online Now

    We have 1666 guests and no members online