In addition to the sale of the property, Aztech Communication Device (Aztech DG), the wholly-owned subsidiary, shall lease back part of the property for a period of 10 years for an aggregate rental of RMB20 million.
The group says that the sale and leaseback is beneficial overall as it will allow Aztech DG to right size its manufacturing facility in China to service customers who wish to carry out manufacturing facilities.
In addition, Aztech DG will not need to bear the cost of managing the property, and the sale will allow the group to deploy capital more effectively.
As at the date of the announcement, the purchaser, an independent third party, has paid Aztech DG RMB8 million. The remaining RMB13 million will be paid in cash by the completion date.
See also: AJJ Medtech signs MOU to bring humanoid robot designed for eldercare into Singapore
Aztech Global will report a net gain of RMB 21.8 million.
Shares in Aztech Global closed 0.5 cents up or 0.775% higher at 65 cents on Aug 5.
