Termbray Industries International (Holdings) is to stop making printed circuit boards (PCB) - its main line of business - and concentrate on mainland property development. The company is to sell its core PCB business to Viasystems Canada for US$325 million. It has also agreed not to make PCBs for two years after the sale. Termbray also promised shareholders it would maintain a net asset value of at least $100 million for 18 months after the sale. 'Notwithstanding that the PCB business of the group has achieved respectable growth during the past years, the directors believe the future development of the PCB business is faced with increasing demand on globalisation,' Termbray said. Company officials did not return calls for comment. The company said it would concentrate on developing three vacant sites totalling 400,000 square metres in Guangzhou and Zhongshan in Guangdong province and begin looking for other investments. Termbray's PCB business produced a net profit of HK$163.96 million in the year to March 31, last year. The company's other business, real estate development in the mainland, by contrast accounted for only 3 per cent of revenues and lost $9.4 million during the same period. The company said it may invest some of the expected $2.51 billion gain from the sale in setting up a venture to sell and produce laminates and other materials which are used in PCB manufacturing. However, it added there were no definite plans, and it would keep the cash on short-term deposit for the time being. DEALS
