Longcheer Holdings

Longcheer Holdings: Longcheer entered agreement with First Prosperous International (FPI) to sell its entire interest in wholly-owned subsidiary, Mobell Technology (MT), for Rmb240m ($48.2m). The disposal is subjected to approval from shareholders for a cash distribution of Rmb450m ($0.256/share), which consists MT's profits and retained earnings of Rmb212.7m, and net proceeds of Rmb237.3m from the disposal. MT is Longcheer's handset design business which provides solutions for the entire value chain, from system testing to exterior design. It operates in four continents, including China and India. After completion of the disposal, Longcheer will primarily be a holding company which will have interests in mobile handset trading and property investment. Proforma FYJun13 post-acquisition NTA will remain at Rmb1.84/share ($0.37/share), while EPS will drop from Rmb1.692 ($0.34) to Rmb0.304 ($0.061).