Enevis (ASX:ENE) to sell 100pc of SKS Lighting business

• Enevis (ENE) has signed a binding agreement to sell 100 per cent of its SKS Lighting business to Verbatim Australia for $865,000
• Under the terms of the asset purchase arrangement, Verbatim will acquire all of the stock, goodwill and intellectual property related to SKS Lighting, and will be able to use the existing brand for up to six months from the date of closing
• The divestment is part of a strategic review of the company’s operations, which includes a greater focus on the audiovisual, electrical and communications sectors
• The proceeds from the sale will go towards the ongoing operations of the company to bolster long-term profitability
• Enevis shares are steady again today, trading for 3.7 cents each

Enevis (ENE) has signed a binding agreement to sell 100 per cent of its SKS Lighting business to Verbatim Australia for $865,000.

Structured as an asset purchase arrangement, Verbatim will acquire the company through the purchase of its stock, goodwill and intellectual property. The deal also includes the use of the SKS Lighting brand for up to six months from the date of closing.

Enevis’ decision to offload the business is part of a strategic review of the company’s operations, which has led to an increased focus on its core products and services within the audiovisual, electrical and communications segments.

The proceeds of the sale will go towards ongoing operations, which are expected to bolster the long-term profitability of the company.

Peter Jinks, Executive Chairman and Managing Director of Enevis, said the sale will solidify an operational pivot for the company.

“The sale of SKS Lighting is consistent with the board’s strategy to focus Enevis on its core operations where it can best leverage the skills, expertise and relationships of its key management personnel to attract and build opportunities and earnings,” Peter commented.

“This transaction completes the board’s decision to substantially change the direction of the company and entirely exit the lighting distribution and manufacturing sector,” he added.

The sale of SKS Lighting is expected to reach completion by the end of July this year.

Over the course of the 2020 financial year, the remaining business — SKS Technologies — accounted for roughly 90 per cent of total revenue. Enevis reported on Friday that these operations have continued to experience significant repeat business, and is further expanding on opportunities related to service and maintenance.

Enevis shares are steady again today, trading for 3.7 cents each at 1:26 pm AEST.