Union Steel Holdings has, through its wholly-owned subsidiary, disposed of its 70%-owned subsidiary, Megafab Engineering, for a consideration of SGD 3 million. On 26 September, Union Engineering, the wholly-owned subsidiary of SGX-listed Union Steel Holdings, together with Low Keng Kee Sebastian, entered into a non-binding term sheet with Manzu Wang.Low owns the remaining 30% interest in Megafab Engineering, a company that was incorporated in May 1993 and provides land transport load handling engineering solutions. Megafab Engineering is the sole distributor in Singapore for products from equipment companies such as Effer, Hiab, Mutilift, Zepro and Geesinknorba. It also offers a wide range of specialised load handling equipment and components including truck-mounted cranes, tailgate systems and waste compactors.The term sheet has set out the broad key terms and conditions of the proposed disposal. It will form the basis for discussion between the parties for a definitive share purchase agreement and ancillary documents. The SPA and documents should be signed no later than six weeks from the date of the term sheet.The purchaser, Wang, specialises in property investment and management, and wholesale trading in China.