SG’s XMH Holdings mulls selling 80% stake in Z-Power Automation

A man checks his phone at the entrance of the Singapore Exchange Ltd. (SGX) headquarters in Singapore. Photographer: Ore Huiying/Bloomberg

Singapore-listed XMH Holdings, a provider of diesel engine for the marine and industrial sectors, has announced plans to dispose of its 80 per cent stake in Z-Power Automation Pte Ltd, an integrator for power, control, and system solutions.

XMH did not provide further details about the planned divestment, including the possible deal size, but said the disposal is part of the process of rationalising its business activities.

“The Board of Directors of XMH Holdings Ltd wishes to announce that the Group is in the process of rationalizing its business activities. As part of this exercise, the Group is contemplating a disposal of its 80 per cent stake in Z-Power Automation Pte. Ltd,” Board Chairman and Managing Director Tan Tin Yeow said.

It was in 2014 when XMH Holdings paid S$13.2 million (about $9.5 million) for an 80 per cent stake in the Singapore-based Z-Power Automation. The company acquired the stake from BH Global Corporation.

The remaining 20 per cent of the company is held by the four existing shareholders who will remain with Z-Power for a “considerable period of time” to extend their expertise to the company.

The purchase consideration of S$13.2 million was similar in size to the S$17.45 million which XMH paid for a 100 per cent stake in Mech-Power in 2013.

Z-Power provides customised in-house engineering and support services to clients based across Asia, Australia, Europe, and the Middle East. Incorporated in 2008, the company transformed from a local switchboard supplier to system integrator in the marine and offshore and energy firms, it said.

When it acquired Z-Power in 2014, XMH said the deal will allow it to expand its core businesses to include the supply of Z-Power’s marine switchboards, remote control distribution systems, motor control centers, shipboard cable installation, and other integrated marine automation products.

Early this month, XMH announced that it has recorded pre-tax losses for the three most recently completed consecutive financial years, based on audited full-year consolidated accounts.

The company also disclosed that its average daily market capitalisation over the last six months has been less than $$40 million, at just approximately S$20.5 million.

Singapore Reporter/s

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Following vacancies can be applied for (only in Singapore).   

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.