 2011-07-11 |
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Reported by Peng Xuan-Yi, Taipei for Industrial and Commercial Times
ACHEM (4306) subsidiary Wangzhou Construction sold 738.1 ping of land in the Tanmei section of Neihu's Phase 5 to Crystalwise Technology (6186). The unit price for the transaction was NT$1.65 million per ping, with a total transaction amount of NT$1.218 billion, yielding a profit of NT$700 million. ACHEM holds 100% of Wangzhou Construction, and compared to ACHEM's capital of 2.77 billion shares, this land sale contributes approximately NT$2.5 per share to its earnings.
However, due to the softened demand in the petrochemical market caused by China's credit tightening, both ACHEM and its investment in ACHEM (1715) saw their June revenues decline by 5.12% and 6.98%, respectively. Now, the addition of this non-operating income from the land sale is expected to boost operational performance. ACHEM stated that the initial down payment of NT$243 million was made by Crystalwise at contract signing, with subsequent payments of NT$304 million and NT$670 million due by September 30 and November 30, respectively. The transaction is expected to be completed and accounted for by the end of the year.
Wangzhou acquired the Tanmei section land in Neihu's Phase 5 in January 2009 for NT$680,000 per ping. The total area of the land is 1,838.96 ping and is classified as a mixed-use commercial and industrial zone. |
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