According to the group, the disposal is “aligned with the group’s plan to exit from the business of engineering services to focus on its agri-technology operations”.
The group adds that following CAEKSA’s continued losses, which require the continued additional financial support from the group to maintain operations, it is not “commercially meaningful to continue managing the business”.
Additionally, CAEKSA has several outstanding projects, which require working capital funding of approximately $3 million, reads the release.
Upon completion of the disposal, the group says that it is expected to redirect its managerial efforts into agri-technology operations.
See also: Keppel and Seatrium released from segregated account arrangement
The disposal is expected to be completed by Oct 31.
Shares in Advanced Holdings closed 1.6 cents lower, or down 13.2%, at 10.5 cents on Oct 21.
