FAST NEWS: Apollo Future Mobility sells sensitive U.S. business
The Latest: Apollo Future Mobility Group Ltd. (0860.HK) announced Wednesday that it will sell its 12.87% holding in U.S.-based 3D printing company Divergent Technologies Inc. to Lateralus Holdings for $101.5 million.
Looking Up: Divergent Technologies has been applying to do classified work for the U.S. Defense Counterintelligence and Security Agency, and thus Apollo’s stake ownership could have become problematic due to U.S. national security concerns.
Take Note: Apollo expects to record a loss of HK$106 million ($13.6 million) on the Divergent Technologies stake sale.
Digging Deeper: Formerly known as WE Solutions, Apollo was mainly funded by high-profile Hong Kong and Macao investors and started out selling jewelry and watches. It entered the electric vehicle (EV) market in 2015, taking on its current name in 2022 after acquiring EV manufacturer GLM, German automotive solutions provider Ideenion Automobil AG, and Apollo, a German niche sports car brand. While the company’s name is similar to Baidu’s (BIDU.US; 9888.HK) autonomous driving business, the two companies are unrelated.
Market Reaction: Apollo’s shares rose slightly on Thursday to end up 1.5% at HK$0.67 by the midday break. The stock now trades near the lower end of its 52-week range.
Translation by A. Au
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