KUALA LUMPUR, Sept 25 (Bernama) -- Sam Engineering & Equipment (M) Bhd (Samee) has entered into a conditional share sale agreement with Singapore Aerospace Manufacturing Pte Ltd (SAMPL), the holding company of SAMEE, to acquire the entire equity interest in Aviatron (M) Sdn Bhd for US$43.40 million (US$1=RM4.68).
In conjunction with the proposed acquisition, Samee proposed to undertake a renounceable rights issue of 135.40 million new ordinary shares in Samee at an issue price to be determined and announced later.
“The proposed acquisition entails the acquisition of 30.0 million ordinary shares in Aviatron, representing the entire equity interest in Aviatron, by Samee from SAMPL,” it said in a filing with Bursa Malaysia today.
It said the proposed rights issue is expected to raise gross proceeds of approximately RM557.84 million based on the illustrative issue price of RM4.12 per rights share.
The company said the proceeds would be utilised for settlement of the purchase consideration, repayment of bank borrowings and estimated expenses relating to the proposals.
“The board is of the view that it is a timely opportunity for Samee to undertake the proposed acquisition after taking into consideration the prospects of Aviatron which has a healthy order book supported by long-term contracts with its major customer which are expected to be fulfilled over the next few years,” it said.
Following the completion of the proposed acquisition, Samee noted that revenue contribution from the aerospace segment would increase to approximately RM430.72 million on a pro forma basis, based on Aviatron’s audited financial statements for the financial year 2023.
“The proposed acquisition will also allow Samee to expand its product offerings and increase the market share of the group in the aerospace industry,” it said.
The company said Aviatron is in a good position to tap into the aerospace industry’s recovery as it has a healthy order book which is to be fulfilled over the next few years.
“Barring any unforeseen circumstances and subject to all required approvals being obtained, the proposals are expected to be completed in the first quarter of 2024,” it added.
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