KUALA LUMPUR (Sept 19): Globaltec Formation Bhd's wholly-owned subsidiaries together with US-based Atmel Corp intend to dispose of their 92% stake in AIC Semiconductor Sdn Bhd (AICS) to Shenzhen-listed Suzhou Good-Ark Electronics Co Ltd for RM57.4 million cash. In a filing with Bursa Malaysia today, Globaltec said the intended disposal will enable the group to dispose of a loss-making subsidiary and enable it to focus and redeploy the cash proceeds into its remaining core businesses. "The Board of Directors is of the opinion that the industry which AICS is in is challenging and no longer attractive," it added. AICS has an authorised share capital of RM100 million comprising of 72 million ordinary shares of RM1 each in AICS and 28 million redeemable convertible preference shares of RM1 each in AICS (AICS RCPS) of RM1 each, out of which 38.885 million AICS shares and 28 million AICS RCPS have been issued and credited as fully paid up. Shares of Globaltec closed 0.5 sen or 12.5% higher at 4.5 sen, with 14.49 million shares traded, for a market capitalisation of RM242.18 million.

Source: The Edge Markets September 19, 2016 15:50 UTC