CSE Global: Announced last Friday that it had entered into a sale and purchase agreement with IMR Power Pte Ltd (IMR) to dispose off its 66% shareholdings in Power Diesel (PD) for $15.5m.
PD is a private company in the business of inspection, maintenance, repair and overhaul of diesel and marine engines and associated mechanical equipment onboard vessels and offshore installations in the marine and offshore industry.
As of 1Q15, the book value of PD is $8.8m, while net consideration after fees is ~$11m, resulting in a one-time net gain of ~$2.2m.
CSE stated its rationale for the disposal is to allow it to focus on its core businesses – process controls and communication and security. CSE has also stated the proceeds will be used for general working capital purposes.
OCBC maintain HOLD with TP unchanged at $0.62.
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