Genetec’s CLT Engineering stake disposal to help firm’s funding needs

CIMB Research believes the proposed disposal will be positive for the group and remove the potential earnings drag from CLT.

PETALING JAYA: Genetec Technology Bhd’s proposed disposal of a 51% stake in CLT Engineering Sdn Bhd to its former executive director Tan Moon Teik for RM21.63mil will enable it to realise the value of its investment in the latter.

The cash proceeds from the disposal will also help meet its funding needs for raw material purchases within the electric vehicle and energy storage segments.