MCLEAN (0167) - Mclean to acquire 55% stake in Singapore-based surface finishing company
KUALA LUMPUR (April 10): Loss-making Mclean Technologies Bhd which provides precision cleaning and washing solutions, announced it had signed a memorandum of understanding with Singapore-based Decor Industries Pte Ltd to acquire a 55% interest in the latter’s subsidiary DWZ Industries Sdn Bhd.
ACE Market-listed Mclean (fundamental: 0.95; valuation: 0.6) did not disclose the acquisition value, as it has yet to sign a share sale agreement (SSA) which will see the transaction completed via the issuance of new shares at an indicative price of 25 sen per share.
In a filing with Bursa Malaysia this evening, Mclean elaborated that the indicative issue price of 25 sen per share represents a 25.13% premium to its five-day volume weighted average market price of 19.98 sen, calculated up to April 10.
“An announcement detailing the terms, effects and all relevant disclosures in relation to the proposed acquisition, shall be released upon execution of the SSA,” the group said in a filing.
Mclean said it will complete a financial and legal due diligence within 75 days from the MOU date, which may be extended, subject to mutual agreements.
The group added that it requires Decor Industries to provide a profit guarantee, whereby the consolidated profits of DWZ for the financial years ending Dec 31, 2015 (FY15) and FY16 will be mutually agreed at a later date.
On the rationale to acquire the stake, Mclean said it sees synergistic value in DWZ, as the latter has interests in surface finishing of metal parts for electric and electronic industries.
On the other hand, Mclean provides precision cleaning and washing solutions for hard-disk drive components, media cassettes, trays, medical devices and other components that require a high level of precision cleaning.
Mclean has been loss-making since FY11 — the year it listed on the ACE Market on May 11.
For its financial year ended Dec 31, 2014, the group saw its net loss widened to RM5.58 million or 4.76 sen per share, from RM1.95 million or 1.66 sen per share; while revenue dropped 13.6% to RM33.82 million, from RM39.14 million.
The stock closed unchanged at 20.5 sen today with 620,400 shares traded, giving it a market capitalisation of RM24.07 million.
(Note: The Edge Research's fundamental score reflects a company's profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations)
http://www.theedgemarkets.com
KUALA LUMPUR (April 10): Loss-making Mclean Technologies Bhd which provides precision cleaning and washing solutions, announced it had signed a memorandum of understanding with Singapore-based Decor Industries Pte Ltd to acquire a 55% interest in the latter’s subsidiary DWZ Industries Sdn Bhd.
ACE Market-listed Mclean (fundamental: 0.95; valuation: 0.6) did not disclose the acquisition value, as it has yet to sign a share sale agreement (SSA) which will see the transaction completed via the issuance of new shares at an indicative price of 25 sen per share.
In a filing with Bursa Malaysia this evening, Mclean elaborated that the indicative issue price of 25 sen per share represents a 25.13% premium to its five-day volume weighted average market price of 19.98 sen, calculated up to April 10.
“An announcement detailing the terms, effects and all relevant disclosures in relation to the proposed acquisition, shall be released upon execution of the SSA,” the group said in a filing.
Mclean said it will complete a financial and legal due diligence within 75 days from the MOU date, which may be extended, subject to mutual agreements.
The group added that it requires Decor Industries to provide a profit guarantee, whereby the consolidated profits of DWZ for the financial years ending Dec 31, 2015 (FY15) and FY16 will be mutually agreed at a later date.
On the rationale to acquire the stake, Mclean said it sees synergistic value in DWZ, as the latter has interests in surface finishing of metal parts for electric and electronic industries.
On the other hand, Mclean provides precision cleaning and washing solutions for hard-disk drive components, media cassettes, trays, medical devices and other components that require a high level of precision cleaning.
Mclean has been loss-making since FY11 — the year it listed on the ACE Market on May 11.
For its financial year ended Dec 31, 2014, the group saw its net loss widened to RM5.58 million or 4.76 sen per share, from RM1.95 million or 1.66 sen per share; while revenue dropped 13.6% to RM33.82 million, from RM39.14 million.
The stock closed unchanged at 20.5 sen today with 620,400 shares traded, giving it a market capitalisation of RM24.07 million.
(Note: The Edge Research's fundamental score reflects a company's profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations)
http://www.theedgemarkets.com
