Motorcycle maker Sanyang Industry Co (三陽工業) yesterday said its board has approved a proposal to sell a 25 percent stake in a Chinese bus manufacturer for about NT$3.64 billion (US$121.4 million).
The Taiwanese firm is to sell its shares in Xiamen King Long United Automotive Industry Co Ltd (廈門金龍聯合汽車) to Shanghai-listed Xiamen King Long Motor Group Co Ltd (廈門金龍汽車集團), another major shareholder, Sanyang said in a filing with the Taiwan Stock Exchange.
Sanyang expects to book a profit of NT$1.24 billion from the sale, spokesman Tian Ren-hao (田人豪) told a news conference in Taipei.
Sanyang would recognize 80 percent of the gains by the end of this year and book the rest in May next year, Tien added.
Closing the deal would help Sanyang simplify its investment framework and reduce management costs, he said.
The transaction is estimated to contribute earnings per share of NT$1.5, company data showed.
Sanyang, the nation’s third-largest motorcycle vendor by market share, also plans to achieve asset revitalization and replenish its operating capital through land development.
The firm said it plans to book a disposal gain of NT$265 million from selling land in Hsinchu County’s Hukou Township (湖口) by the end of this quarter at the earliest, and is seeking partners to jointly develop two plots of land totaling 3,300 ping (10,909.1m2) in Taipei’s Neihu District (內湖).
The company’s net profit in the first quarter totaled NT$222.22 million, a more than 14-fold increase from NT$14.27 million in the same period last year, while sales over the period rose 1.45 percent to NT$7.71 billion from NT$7.6 billion, company data showed.
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