AUGUSTASIA BUSINESS OUTLOOK9NEWSROOM RAFAEL TO SELL 50% STAKE IN CONTROP TO AEROVIRONMENTAspire, the Singapore-based business finance platform, has launched Aspire Yield, a new investment feature designed to help SMEs earn higher returns on idle funds.The rollout follows AFT SG 2 Pte, part of the Aspire Group, receiving a Capital Markets Services License from the Monetary Authority of Singapore (MAS) in April 2025. Through Aspire Yield, eligible businesses in Singapore can invest directly from their Aspire accounts, with options in SGD and USD managed by Fullerton Fund Management. Users can access returns of up to 2.0 percent in SGD and 3.9 percent in USD, compared with typical business savings rates of just 0.01 percent to 0.25 percent.Notably, 55 percent of funds invested in Aspire Yield were previously sitting idle in low-yield business accounts. The feature offers next-business-day liquidity, no minimum investment requirements, and no lock-up periods, making it attractive for SMEs seeking capital preservation and flexibility. This contrasts with peer-to-peer lending platforms such as Funding Societies, which offered higher average returns (7.09 percent in 2021) but with credit risk exposure and lock-in periods of up to 18 months.Aspire's new product comes at a time when two-thirds of Singapore SMEs report rising costs and shrinking profitability, with 56 percent worried about weaker consumer spending. Globally, SMEs account for 90 percent of businesses, over 50 percent of jobs, and up to 40 percent of GDP in emerging economies, yet many lack access to both affordable credit and viable investment options.By combining conservative returns with liquidity, Aspire Yield positions itself as a safer, more flexible alternative for SMEs that need to keep working capital readily available while still generating returns. Israeli defense technology firm Rafael Advanced Defense Systems is in advanced talks to sell 50 percent of its stake in subsidiary Controp Precision Technologies, with U.S.-based AeroVironment emerging as the leading bidder.The deal values Controp between US$600 million and US$700 million, though Rafael is reportedly seeking a higher valuation. Rothschild & Co. is advising on the transaction. Controp develops electro-optical and precision motion systems widely used in defense and security applications. In 2024, the company posted strong results with US$150 million in revenue (up from US$115 million in 2023) and US$8 million net profit, a sharp rise from US$2.5 million a year earlier.Additionally, Controp plans to list its subsidiary MicroCon Vision on the Tel Aviv Stock Exchange at a valuation of 300­400 million shekels (US$88.8m­118.5m).The partial divestiture will reduce Rafael's stake from 100 percent to 50 percent, effectively removing Controp from government-owned company status. This move reflects broader challenges faced by Israeli state-owned defense firms, including restrictions on salaries, stock options, and decision-making flexibility. Rafael will retain significant control but gain the operational agility needed to compete globally against private defense contractors.The transaction highlights a wider industry trend where defense firms restructure portfolios to emphasize next-generation capabilities rather than scale expansion. AeroVironment, with revenues of US$820 million and US$43 million in net profit in FY2025, sees the acquisition as an opportunity to strengthen its technological edge in electro-optical systems, a critical area in modern conflicts where advanced surveillance and targeting technologies are in high demand. ASPIRE LAUNCHES SME INVESTMENT FEATURE· Aspire secures MAS license and launches Aspire Yield for SMEs· Returns up to 2.0 percent (SGD) and 3.9 percent (USD) with next-day liquidity· 55 percent of invested funds were previously idle in low-yield accounts· afael to divest 50 percent of Controp in a US$600­700M deal· Controp revenue surged to US$150M with US$8M net profit in 2024· Move boosts flexibility by removing Controp's government-owned status
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