QPL eases cash flow with $1.5b Asat sale

The sale by QPL International Holdings of a lucrative asset for HK$1.5 billion has temporarily solved the company's cash-flow crisis, according to analysts.

Nonetheless, uncertainties loom about the company's profitability prospects, they warned.

The company sold to a consortium a 50 per cent stake in its wholly owned subsidiary, Asat Group.

Asat assembles integrated circuit packages and has been a profit generator for QPL.

It had recently won a US$150 million contract for integrated-circuit assembly.

A QPL spokesman said: 'Asat's business is viable. The deal releases the group from immediate pressure to repay debts.' The consortium includes private equity fund Chase Asia Equity Partners and direct investment firms Olympus Capital Holdings Asia and Orchid Asia Holdings.