Just a few months ago, Creative had released their intention to sell the Qingdao China Factory to a 3rd party. It is announced today that the sale will not go through due to the "purchaser has not fulfilled certain payment conditions". This may have some impact to Creative, since they can't dispose their factory, they will not be getting any funds in if they need it badly.
We refer to the announcements released on 5 May 2010 and 2 July 2010 by Creative Technology Ltd (“Creative”) relating to the disposal of an 80.1% equity interest in Creative Technology (Qingdao) Ltd, a wholly-owned subsidiary in China.
The purchaser has not fulfilled certain payment conditions stipulated in the sale and
purchase agreement and consequently Creative will not be proceeding with this
transaction. The non-completion of this transaction is not expected to have any
material impact on the financial position of the Creative group for the current financial year.
Creative will continue to consider opportunities to divest the Qingdao manufacturing
facility, which is in line with the strategic direction that Creative has undertaken to
dispose of its manufacturing facilities.
Ng Keh Long
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