Automated Systems (HKG:0771) will provide a limited guarantee in connection with the disposal of its security authentication associate i-Sprint Holdings, according to a Jan. 9 Hong Kong bourse filing.

Shares of the information technology services provider were up nearly 5% in Monday morning trade.

Under the transaction, i-Sprint Holdings has agreed to sell its security authentication business to Secure Trust Technologies, after which the group will cease to hold any interest in i-Sprint.

As part of the deal, ASL Security, a wholly owned subsidiary of Automated Systems, entered into a deed of guarantee alongside other sellers to secure certain post-completion obligations of i-Sprint.

The total guarantee is capped at $87.9 million, equivalent to the full consideration, while ASL Security's liability is limited to about $34.5 million, the filing said.

The company expects net cash proceeds of about $24.8 million from the disposal, which will be used for regional business development, it added.