Contributions from the JV is based on proportionate consolidation into the P&L statement. I do not think they are included under associates' income as this is shown clearly under its 2012AR or unless I had interpreted it wrongly. Correct me if I am wrong
So for 2012, contribution from the JV of JAH did actually pull GPI into profitability as they contributed S$12.6mln while FY12 consolidated PAT was only S$5.3mln.
If you look at 9M13, PBT was S$9.5mln while contributions from JAH was around S$4.4mln - close to 50% of consolidated PBT.
From what it seemed, which I stand to be corrected, JAH is a decent profitable business for GPI. The divestment doesn't seem to streamline GPI into a more profitable company (i.e. selling loss-making businesses and focusing on their profitable ones) but it instead looks likely not be accretive. Are the other businesses look profitable? That I do not look as I have yet to look into it.
Also, the proceeds will be used for WC purposes and paying down of debts, nothing of which will indicate the return of loss earnings.
Lastly, part of the sales consideration is based on a dividend payout from JAH Group itself, which, form the purchaser's point of view, isn't really forking out of their own pocket. Ex-dividend distribution, the purchase is valued at around 8x P/E assuming a 20% tax rate and at around 0.85x P/B. (Note: This doesn't mean GPI should trade at this level as they are doing a different type of business altogether)