AEM Holdings sells shares in ATECO for $6.8m

Lack of profitability prompted the sale.

AEM Holdings unit AEM Singapore Pte. Ltd sold 470,504 common shares and 994,220 preferred shares in South Korean company ATECO for $6.8m.

The unit entered the share purchase agreement with institutional investors LB Innovation Growth Fund II, JP-IBKS Innovation MPE Fund No. 1, JP-IBKS Innovation MPE Fund No. 2, New Deal Extension New Technology Fund No. 1, and Foong Wai Fee, a registered director of ATECO.

The buyer will settle the amount via wire transfer of immediately available funds to AEM’s account. The closing of the sale and purchase shall take place within 10 business days.

Explaining the rationale behind the sale, AEM said its board determined that the equity ownership in ATECO no longer offered strategic benefit for all parties, especially given the lack of profitability.

AEM started the process of finding a strategic buyer late last year.