EG (8907) - EG Industries to buy Singapore-based marketing firm for RM10.2m
April 21, 2015 : 6:44 PM MYT
KUALA LUMPUR (April 21): Electronic manufacturing services (EMS) provider EG Industries Bhd has proposed to buy Singapore-based sales and marketing firm Singyasin Holdings Pte Ltd for SG$3.8 million (RM10.2 million), cash.
In a press release today, EG Industries said it has entered into a conditional sale and purchase agreement which will see EG Industries acquiring a 95.8% equity interest in Singyasin or 10.75 million ordinary shares at SG$1 (RM2.7) each.
EG Industries chief executive officer and executive director Alex Kang said the proposed acquisition would allow the group to leverage on Singyasin as a sales and marketing arm to serve its clientele and international procurement offices in Singapore, Thailand and southern region of Malaysia.
“The exercise is part of our strategy towards vertical integration to include printed circuit board related services, which will certainly enhance our operating efficiency and enable us to benefit from resource and technology sharing.
“Upon completion of this acquisition, we believe that EIB will [be] directly and favourably positioned in key manufacturing hubs in the South East Asia region, serving the requirements of global multinational corporations,” Kang said.
EG Industries (valuation: 170; fundamental: 100) said the purchase consideration was at net tangible asset (NTA) value; Singyasin’sNTA stood at SG$4 million (RM10.7 million) as at Dec 31, 2014 (FY2014).
The acquisition is subject to approval from shareholders at an extraordinary general meeting and relevant regulatory authorities, its statement further read.
The proposed acquisition is expected to be completed in the second half of this year, and the group intends to finance it through internally-generated funds and/or external borrowings.
EG Industries provides EMS for world-renowned brand names of electrical and electronic products for several industries, including consumer electronics, ICT, medical, automotive and telecommunications.
Its shares closed half sen or 59% higher at 0.855 sen today, with a market capitalisation of RM63.5 million.
http://www.theedgemarkets.com
April 21, 2015 : 6:44 PM MYT
KUALA LUMPUR (April 21): Electronic manufacturing services (EMS) provider EG Industries Bhd has proposed to buy Singapore-based sales and marketing firm Singyasin Holdings Pte Ltd for SG$3.8 million (RM10.2 million), cash.
In a press release today, EG Industries said it has entered into a conditional sale and purchase agreement which will see EG Industries acquiring a 95.8% equity interest in Singyasin or 10.75 million ordinary shares at SG$1 (RM2.7) each.
EG Industries chief executive officer and executive director Alex Kang said the proposed acquisition would allow the group to leverage on Singyasin as a sales and marketing arm to serve its clientele and international procurement offices in Singapore, Thailand and southern region of Malaysia.
“The exercise is part of our strategy towards vertical integration to include printed circuit board related services, which will certainly enhance our operating efficiency and enable us to benefit from resource and technology sharing.
“Upon completion of this acquisition, we believe that EIB will [be] directly and favourably positioned in key manufacturing hubs in the South East Asia region, serving the requirements of global multinational corporations,” Kang said.
EG Industries (valuation: 170; fundamental: 100) said the purchase consideration was at net tangible asset (NTA) value; Singyasin’sNTA stood at SG$4 million (RM10.7 million) as at Dec 31, 2014 (FY2014).
The acquisition is subject to approval from shareholders at an extraordinary general meeting and relevant regulatory authorities, its statement further read.
The proposed acquisition is expected to be completed in the second half of this year, and the group intends to finance it through internally-generated funds and/or external borrowings.
EG Industries provides EMS for world-renowned brand names of electrical and electronic products for several industries, including consumer electronics, ICT, medical, automotive and telecommunications.
Its shares closed half sen or 59% higher at 0.855 sen today, with a market capitalisation of RM63.5 million.
http://www.theedgemarkets.com
