SINGAPORE (June 5): Advanced Holdings has disposed of its entire 85% stake in ZMK Technologies (ZMK) for a total consideration of €1.4 million (S$2.1 million) on Thursday.
Following the completion of the disposal, ZMK will cease to be a subsidiary of Advanced Holdings.
The German-incorporated ZMK became a subsidiary of Advanced Holdings in 2015 when it acquired 85% of the issued and paid-up capital in ZMK. ZMK is in the business of developing and manufacturing customised special valves for the petrochemical industry.
The purchaser is a manufacturer of valves specifically developed for demanding applications in the wider energy sector in Finland.
Advanced Holdings says the disposal will enable the company to conserve and re-strategise its financial and capital resources for its other businesses, and limit its exposure to the prolonged operational issues experienced by ZMK in an SGX filing on Friday.
It says ZMK has been incurring increasing losses for the past few years, and has been relying solely on the financial support from the company to maintain its operations. The disposal will allow Advanced Holdings to recover the loans owed by ZMK. The loans will be repaid by the purchaser to the company in tranches.
Advanced Holdings shares closed at 6 cents on Thursday.
