Balda Investments Singapore, a subsidiary of German precision injection moulder Balda (Bad Oeynhausen; www.balda.de), has sold 20m shares from its holding in TPK Holding (Xiamen, Fujian / China). The company said its interest in the touch screen producer is no longer of strategic significance. The deal expected to generate proceeds of around EUR 238m, is subject to exchange rate fluctuations.

Balda said it would use the proceeds to launch a strategic realignment, although it remains unclear what exactly this will entail. Speaking to Plasteurope.com, a company representative said Balda's medical technology segment was not as developed as the board would like it to be, suggesting an acquisition-related expansion. Balda also plans to restructure its EP business in Malaysia, which suffered losses as a result of last year's natural catastrophe.

The announcement of the sale of the shares was made at a Balda extraordinary general meeting held on 8 February 2012 at which majority shareholder Octavian Special Master Fund failed in an attempt to replace Balda board members with its own candidates – see Plasteurope.com of 10.02.2012. Octavian is reported to have said subsequently that a “clerical error” had prevented it from using its block vote to force the sale of Balda’s entire holding in TPK. The announced sale reduces the interest of Balda Investments Singapore in TPK to 7.6% from 16.1%. The Balda board said it intends to dispose of the remaining holding at optimum value.

Balda said the transaction will have a substantial positive impact on group profits through a considerable one-off contribution to earnings in 2012. The board confirmed its plans to distribute part of the proceeds of the disposal through an extraordinary dividend to shareholders. As a consequence of the transaction, Balda’s representative on the TPK management board will resign.