ATECO is a South Korean company that specialises in the design and development of memory test handler solutions. The sale shares were acquired by ASG during the financial year ended Dec 31, 2021.
The initial investment in ATECO enabled certain licensing of intellectual property to AEM that has been useful in the company’s capabilities’ development, the company says in a filing.
However, after a thorough review of the company’s technology and customer roadmaps, AEM determined that continued equity ownership in ATECO no longer offered strategic benefit for all parties — especially given the lack of profitability at ATECO.
A process to find a strategic buyer for ASG’s stake was started late last year. Although the consideration represented a 23% discount to the carrying amount of the AEM's investment in ATECO as at Dec 31, 2023, it was the best offer the company has received.
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Based on the audited consolidated financial statements of AEM for its FY2023, the book value of the sale shares was $8.8 million. The proposed disposal is expected to result in a deficit of proceeds over book value and a loss on disposal of approximately $2 million.
AEM intends to use the net proceeds from the proposed disposal for general working capital purposes.
Shares in AEM closed 2 cents lower or 1.07% down on June 25 at $1.85.
