Metech International Proposes Disposal of 80% Stake in Asian Eco Technology: Detailed Update for Investors

Overview

Metech International Limited (“Metech” or “the Company”) has announced a significant corporate development involving the proposed disposal of 80% of the issued and paid-up share capital in Asian Eco Technology Pte. Ltd. (“AET”). The disposal, if completed, would see Metech divest a non-core, loss-making asset and further refocus its business on its successful health supplements segment.

Key Points of the Proposed Disposal

• Transaction Details: Metech intends to sell 80% of AET’s shares, which previously operated the Group’s lab-grown diamond business. The sale will be conducted for a nominal cash consideration of S\$1.00, but includes the forgiveness of intercompany loans amounting to approximately S\$4.79 million.
• Waivers Sought: The Company has applied to the Singapore Exchange (SGX-ST) for waivers from two requirements:
  • Shareholders’ approval of the disposal
  • Appointment of an independent valuer to value AET

  These waivers are sought due to the non-core nature of AET, its loss-making status, and the fact that the asset is now largely dormant.

• Change in Business Focus: Metech has ceased its lab-grown diamond business, diversified, and now generates 100% of its revenue from health supplements. In the nine months ended 30 September 2025, the lab-grown diamond business contributed zero revenue and registered ongoing losses.
• Financial Impact:
  • AET is a non-core asset with net tangible liability value (NTL) of only S\$0.05 million as at 30 September 2025, well below the Group’s NTL.
  • Assuming the disposal had occurred at the start of 2024, Group losses attributable to shareholders would decrease by approximately S\$0.55 million, or 22.17%.
  • Group NTL per share would decrease from 0.40 Singapore cents to 0.33 Singapore cents post-disposal.
  • The disposal will improve the Group’s financial position by removing approximately S\$0.28 million of liabilities and freeing up cash flow.
• Retention of Assets: Metech will retain ownership of five microwave plasma chemical vapour deposition machines, which are the main tangible assets of AET. These machines may be used for future technical services or rental arrangements, potentially preserving some optionality for future business activities.
• Shareholders’ Support: Shareholders representing 53.78% of the Company’s issued shares have given written confirmation to vote in favour of the disposal if a meeting is required, making an EGM unnecessary and expediting the process.

Important Information for Shareholders

• Potential Share Price Impact:
  • This disposal marks a strategic shift away from a loss-making segment to focus on profitable health supplements, which may be viewed positively by the market.
  • By eliminating a source of ongoing losses and improving balance sheet metrics, Metech’s financial health stands to benefit, which could affect investor sentiment and share price.
• No Material Change in Risk Profile: The Board is of the opinion that the disposal will not result in any material change to the Company’s risk profile.
• No Valuation Required: As AET is now a shell entity with minimal assets and the main machinery retained by Metech, commissioning a new valuation is deemed unnecessary and would only add costs.
• Streamlined Operations: The disposal will allow Metech to focus resources on its core business, which has shown substantial growth and profitability.
• Further Announcements: Metech will continue to update shareholders as material developments occur regarding the waiver applications and the disposal process.

Conclusion

The proposed disposal of AET is a decisive move by Metech International to divest a loss-making, non-core asset and sharpen its focus on its thriving health supplements business. With improved financial metrics, reduced liabilities, and the support of majority shareholders, this transaction is likely to be price sensitive and could positively impact shareholder value. Investors should closely monitor further announcements for final approval and completion details.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own due diligence and consult professional advisers before making any investment decisions. The information herein is based on company disclosures as of 12 December 2025 and may be subject to change.

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