According to The Business Times distributors of environmental equipment, USP Group plans to sell its biofuels unit for $6 million (€5.2 million).
USP Group is selling its 93.09% owned waste oil-to-biofuel subsidiary, Biofuel Research for $5.59 million (€4.9 million) to a joint venture between the founders of AJ Jetting and Shanaya Environmental Services, The Business Times reports.
March 30th is the agreed upon date for the completion of the sale, however USP will need its shareholder to approve the transaction at an extraordinary general meeting.
Chief executive at USP Group, Kan Bright Pan said, "After carefully analysing the business and its contribution to the group, the board has decided to sell Biofuel Research, as it is attractively priced, so that we can concentrate more on our marine business.”
Pan added, “In view of this, the group will explore new markets and opportunities, investing in (research and development) for other marine products to increase the product range."
The Business Times reports that the company is selling the unit to raise money and focus on its marine business.