TagMaster AB divests loss making business in Malaysia
Stockholm, December 20, 2012
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 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 commerzialisation 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 3 MSEK of this goodwill in quarter 3.
The divested business has had a total turnover 2012 of almost 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.
About TagMaster
TagMaster is an application driven technology company that designs and markets advanced radio frequency identification (RFID) systems and information products for demanding environments. Application areas include vehicle access control, rail bound transportation and logistics , in order to increase efficiency, security, convenience and to decrease environmental impact. TagMaster has dedicated agencies in the US and in China and exports mainly to Europe, Middle East, Asia and North America via a global network of partners, systems integrators and distributors. TagMaster was founded in 1994 and has its headquarters in Stockholm. TagMaster is a public company and its shares are traded on First North stock exchange in Stockholm, Sweden. TagMaster’s certified adviser is Remium AB.
For more information, please contact:
Jonas Svensson, CEO + 46(0)730-528350, jonas.svensson@tagmaster.com