Temasek subsidiary cuts holding in Nanofilm Technologies

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Singapore state-owned investment company Temasek’s deemed interest in Nanofilm Technologies International declined to 5.98 percent from 6.04 percent after the sale of 450,000 shares for a total S$1.95 million, according to an SGX filing Monday.

The shares were sold by an investment fund managed by a subsidiary of SeaTown Holdings, which holds around 0.1466 percent of Nanofilm, the filing said. SeaTown is an indirect subsidiary of Temasek.

In addition, Temasek’s indirect subsidiary Fullerton Fund Management has a 0.5659 percent interest in Nanofilm as an investment manager for various funds, including funds in which Temasek has an interest via a subsidiary, the filing said.

Venezio Investments holds 5.2687 percent of Nanofilm’s shares, the filing said. Venezio is a wholly owned subsidiary of Napier Investments, which is a wholly owned subsidiary of Tembusu Capital, which in turn is a wholly owned subsidiary of Temasek.

Both Fullerton and SeaTown are independently managed Temasek portfolio companies, and Temasek isn’t involved in their operating decisions, the filing said.

Shares of Nanofilm ended Monday up 3.76 percent at S$4.14 after tumbling more than 30 percent last week to as low as S$3.817.

Last week, Nanofilm issued explanations to address concerns raised by analysts and investors after its first half earnings release and the resignation of its chief operating officer, not long after its CEO stepped down, spurring the share price tumble.

Nanofilm Technologies had reported first half net profit slipped 17.9 percent on-year to S$17.9 million on revenue of S$96.6 million, up 24.2 percent on-year; gross profit margins fell 6.5 percentage points on-year to 46.1 percent, amid higher costs associated with the new Shanghai Plant 2, equipment qualification costs and higher new-product introduction costs, the company said.

On Wednesday, Nanofilm said in an SGX filing that the new Shanghai Plant 2 had incurred higher utility costs related to the rental of diesel power generators and diesel consumption for power, which was required as the application to the Chinese municipal government for high-tension power had taken longer than expected on contractor delays and the associated approval process due to the Covid-19 situation.