Chosen Holdings Limited, a mould design & fabrication company for the electronics industry, said it has entered into an agreement to invest S$2 million Gashub Technology Pte Ltd.
Under the agreement, Chosen will subscribe for 300,000 new Gashub shares, representing a 40 per cent of the enlarged share capital.
The remaining 60% of Gashub's share capital will continue to be held by Mr Lim Shao-Lin, a Gashub shareholder and managing director.
'This investment is timely given that demand for fuel cells is projected to increase due to escalating fuel costs and pressure by government and global bodies to use clean energy. It also marks a new milestone for Chosen, with the expansion of our business interest into this promising energy sector,' Aloysius Lim, Chairman and CEO of Chosen, said.
Gashub, which was established in 2005, manufactures fuel cell1 systems to produce electricity mainly for uninterrupted power supply (UPS) applications. It has a current customer base consisting of both local and foreign governmental organisations and educational institutions.
The investment will be by way of cash payable in four tranches. It will be financed by CIPL's internal funds and is not expected to have a significant effect on the company's net tangible assets per share nor earnings per share for the financial year ending 30 June 2008. -- BT Newsroom
Monday, June 23, 2008
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