[ET Net News Agency, 25 September 2017] SIM Technology (02000) said it agreed to sell
the entire equity interest in Shanghai Simcom Wireless Solutions Limited for Rmb438
SIM Technology also agreed to procure that certain patents owned by Shanghai Simcom and
Shanghai Sunrise and three trademarks owned by Shanghai Simcom shall be transferred to
Simcom Wireless before completion for Rmb90 million.
Simcom Wireless' principal business is the design and research and development of
wireless communication modules.
It is estimated that the Group will record an unaudited net gain before taxation of
about Rmb346 million from the transactions. SIM Technology intends to apply the net
proceeds of about Rmb479.7 million for the purchase of the land as to about 35% for the
Group's operations centre in Dongguan, the PRC and the construction of the operations
centre; about 20% for upgrading the production facilities of the Group in Shanghai and the
above operations centre and development of an automated intelligent 3D-warehouse; and
about 45% for the payment of a special interim dividend (subject to completion) and for
general working capital. (HL)
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