Aztech Global’s wholly-owned subsidiary is selling factory buildings in China for a consideration of RMB41 million to an independent third party.
The property is a leasehold property with a lease area of 50 years from 2002, and a land area of 32,566.7 square meters (sqm).
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: KSH raises $8.67 million placing out treasury shares at 30.5 cents each
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.
