IMI unit sells property for P756M

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Speedy-Tech Electronics Ltd., the Singapore-based indirect unit of Ayala-led Integrated Micro-Electronics Inc. (IMI), has completed the sale of its property in Singapore to raise fresh funds for its expansion plans next year.

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In a disclosure to the stock exchange, IMI said the sale of its factory in 20 Kian Teck Lane, Singapore amounted to S$22.4 million, approximately P756.16 million.

“With the completion of the sale, IMI is able to monetize its asset to enhance its capital structure and invest in further growth and expansion of its business,” the company said.

Speedy-Tech sold the property to DBS Trustee Ltd., a trustee of Soilbuild Business Space REIT, which is a long-term real estate investment trust based in Singapore and listed in the Singapore Exchange Securities Trading Limited since August last year.

On December 5, IMI successfully listed its P1.6 billion follow on offer shares to the stock exchange, consisting of 215 million base offer shares priced at P10 each.

The P1.2 billion capital expenditure (capex) programmed for next year will be sourced from the follow on offer proceeds, which will mostly go to the expansion of its higher margin sectors: automotive, telecommunications and industrial sector.

As of end-September, IMI’s automotive sector take up 37 percent of the total sales mostly based in Europe and the Philippines; 20 percent for telecommunications mostly in China and the Philippines; 14 percent for industrial devices mostly in China and the Philippines; and 12 percent for the high end consumer devices.

IMI also saw a surge its net income to $21 million from $5.3 million it recorded the same time last year. Revenues also advanced 19 percent to $650.1 million from the $547.1 million a year ago. For the third quarter alone, IMI observed an 11-percent increase to $219.1 million on double-digit growth in telecommunications infrastructure device, storage device and automotive businesses.

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