TagMaster AB is selling its daughter company in Malaysia to a Malaysian buyer. The sale is a step in the direction of the TagMaster strategy to focus on selected application segments within the RFID market.
TagMaster AB is selling its daughter company in Malaysia to a Malaysian buyer. The sale is a step in the direction of the TagMaster strategy to focus on selected application segments within the RFID market.
The sale means that TagMaster will have no further costs for running the company in Malaysia. The debts of the Malaysian company will be written of and they will be taken in the 2012 result. The total cost (losses) is around $ 0.2 million (1 MSEK) for the period until the sale of the company.
Since TagMaster AB acquired the company Free2Move in Asia and thereby established TagMaster SB with business in Malaysia, the growth expectations have changed dramatically, partly due to not realized sales volumes (much lower volumes and a negative result), partly due to delay in commercialization of new products and projects. These changed market conditions has lead to a re-evaluation of the goodwill from the acquisition of Free2Move Asia and resulted in a write down with $ 0.5 million (3 MSEK) of this goodwill in quarter 3.
The divested business has had a total turnover 2012 of almost $ 0.5 million (3 MSEK).
There will be a continuation of the cooperation with the Malaysian company and its new owner whereby the company will continue to represent and sell the TagMaster products in Southeast Asia.