<article>Malaysia-listed tracking solutions provider <a style="color: #000080;" href="http://www.grand-flo.com/">Grand-Flo Bhd</a> plans to sell its entire 18.24 per cent holding in Thai-listed <a style="color: #000080;" href="http://www.simat.co.th/">Simat Technologies Pcl</a> as part of its strategy to focus on its core operations.</article>

Malaysia-listed tracking solutions provider <a style="color: #000080;" href="http://www.grand-flo.com/">Grand-Flo Bhd</a> plans to sell its entire 18.24 per cent holding in Thai-listed <a style="color: #000080;" href="http://www.simat.co.th/">Simat Technologies Pcl</a> as part of its strategy to focus on its core operations.
“From a strategic point-of-view, we have plans to dispose it as we are not in the broadband business. This business needs a lot of capex. And if we want to grow (the business), we need to raise funds and borrowings. It’s going to be tough on us. If we have good buyers, our intention is to definitely sell the stake,” Grand-Flo managing director and president Tan Bak Hong told the media.
Grand-Flo became a strategic partner and a major shareholder in Simat in 2005. The Thai firm has four businesses: IT solutions, broadband, computer hardware wholesale and label manufacturing.
Tan said, Simat is a valuable asset and needs to be monetised at a higher price. Grand-Flo is still pursuing legal action against the Thai government, for not taking delivery of the built internet infrastructure commissioned to Simat by the government, due to the political uncertainties in the country. Tan said, the suit, which was filed in 2013, is still ongoing.
Samat suffered net loss of 54.53 million baht in 2014 for the first time, which surged to 80.33 million baht in 2015.
It reported 272.5 million baht in revenue and 19.7 million baht in net loss for the first quarter this year. Of the net loss, 12.7 million baht was from the broadband business, 9.2 million baht from IT solution and 1 million baht from computer hardware wholesales business.
However, the company cited that the broadband internet business has improved from last year. It claims to have 17,000 subscribers and is adding 1,000 new users a month.
&#8220;We expect the broadband business will reach the break-even point this year,&#8221; Simat&#8217;s director Thammanoon Korkiatwanich said.
While trying to cope with the fierce competition in the IT solution business, Simat announced that it was downsizing, the number of employees in the onsite service department.
It also plans to sell the hardware business of associate in Vietnam and subsidiary in Malaysia. The divestment is expected to completed within two years. The cash from the divestment will be invested in the company&#8217;s broadband business.
Meanwhile, it plans to get its subsidiary Simat Label listed on the Thai bourse in the next two years.The Label business has generated total revenue of 37.9 million baht and the net profit of 3.2 million baht, up from 32.3 million baht and 2.9 million baht in Q1/2015, thanks to the big order from customer in smart phone manufacturing business.
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Malaysia's listed tracking solution provider Grand-Flo Bhd plans to sell its entire 18.24 shares in Thailand’s listed Simat Technologies Pcl. 

Malaysia's Grand-Flo to sell 18% stake in Thai-listed Simat Technologies

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