China Ocean Fishing Holdings Ltd (HK:8047) announced on Monday that it sold 25 million shares of TOMO Holdings Limited, a Singaporean manufacturer of leather upholstery and electronic accessories for passenger vehicles.
China Ocean Fishing sold around 5.56% of the issued share capital of TOMO for between HK$1.05 and HK$1.57 per share. Total gross sale proceeds stood at HK$28.298 million (excluding transaction costs), which will be used as general working capital, or for other investment opportunities.
The transaction would cause the Chinese firm to record an unaudited loss of roughly HK$18.936 million, according to the statement. However, the board said the disposal of the stock would enhance the liquidity of the company.
“The disposal is a strategic move to seek for both better investment return of its financial resources and for future business development strategy as a whole…. the disposal represents an opportunity for the Group to realize its investment in TOMO,” China Ocean Fishing said in a statement, adding that it still holds 5 million shares, or 1.11% of the issued share capital of the Singaporean company./reuters.com