SINGAPORE: TEE International Limited’s wholly-owned subsidiary, TEE Infrastructure Private Limited has entered into an agreement with Asia Enviro Services Ltd. to dispose its entire 45 percent stake in TEE Medical Services Pte. Ltd, which is engaged in the treatment and disposal of bio-hazardous, cytotoxic and pharmaceutical waste.
Asia Enviro is the other 55 percent shareholder of TEE Medical and is a wholly-owned subsidiary of Dymon Asia Private Equity (S.E. Asia) Fund II Pte. Ltd.
The disposal consideration of Singapore $5.0 million was determined after arm’s length negotiations taking into account, amongst others, the book value of TEE Medical, and is at an approximately 7.4 percent premium over the company’s initial investment of S$4.657 million on August 31, 2018.
The disposal is intended to realise value from this investment and the net proceeds will be applied towards working capital of TEE Infrastructure. This can be viewed as a reallocation of resources into TEE Infrastructure’s general waste business to strategically move up the value chain and further expand its material recovery and recycling business.
Completion of the disposal has taken place on February 28, 2019. The disposal is subject to certain conditions subsequent, including inter alia all necessary regulatory and third-party approvals, consents and waivers being obtained. [the_ad id=”32940″]