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UNIMECH

1.230

(%)

TRANSACTIONS (CHAPTER 10 OF LISTING REQUIREMENTS) : NON RELATED PARTY TRANSACTIONS Increase Equity Interest in Puremech Coating Sdn. Bhd.

UNIMECH GROUP BERHAD

Type Announcement
Subject TRANSACTIONS (CHAPTER 10 OF LISTING REQUIREMENTS)
NON RELATED PARTY TRANSACTIONS
Description
Increase Equity Interest in Puremech Coating Sdn. Bhd.

Introduction

 

Unimech Capital Sdn. Bhd. (“UCSB”), a wholly owned subsidiary company of Unimech Group Berhad (“UGB”) had on 14 October 2019 acquired 25,000 shares representing 5% equity interest in Puremech Coating Sdn. Bhd. (“PCSB”) from Mr. Lim Wei Siong (“LWS”) for a cash consideration of RM120,000 (“the Acquisition”).

 

The Acquisition is sourced from UCSB’s internally generated fund.

 

TCE Casting Sdn. Bhd., a 51% owned subsidiary company of Unimech Engineering (K.L.) Sdn. Bhd., which in turn is a wholly owned subsidiary company of UGB currently owns 35% equity interest in PCSB.

 

Upon completion of the Acquisition, UCSB’s equity interest and UGB’s effective equity interest in PCSB increased from 35% to 40% and 52.85% to 57.85% respectively. 

 

Information on PCSB

 

PCSB was incorporated on 27 September 2012 under the Companies Act 1965 as a private limited company. The current paid up share capital of PCSB is RM500,000 divided into 500,000 ordinary shares.

 

The principal activities of PCSB are spraying, coating, silk screening, hot stamping, general engineering in all kinds of metal, plastic, chemicals, substance and products.

 

PCSB had an unaudited shareholders’ fund of RM2,427,295 as at 31 August 2019

 

Information on LWS

 

LWS is a Malaysian citizen. He has no directorship or shareholding in UCSB and UGB.

 

Cash Consideration

 

The cash consideration of RM120,000 is arrived after taking into consideration the future earnings and shareholders’ fund of PCSB as at 31 August 2019.

 

Rationale for the Acquisition

 

The Acquisition enables UGB to strengthen its control of PCSB and is expected to benefit from the potential increase of earnings contribution from PCSB in future.

 

Financial Effects

 

The Acquisition will not have any material effect on the net assets per share, earnings per share and gearing of UGB for the financial year ending 31 December 2019

 

The Acquisition also has no effect on the share capital and substantial shareholders’ shareholding of UGB

 

There are no other liabilities or guarantees to be assumed by UCSB and UGB arising from the Acquisition.

 

Directors’ and Major Shareholders’ Interest

 

None of the Directors and Major Shareholders or persons connected to the Directors or Major Shareholders has any interest, direct or indirect in the Acquisition.

 

Approval Required

 

The Acquisition is not subject to the approval of the shareholders of UGB or any other government authorities.

 

Statement by the Board of Directors

 

The Board of Directors is of the opinion that the Acquisition is in the best interest of UGB.

 

Estimated Timeframe to Complete

 

Barring any unforeseen circumstances, the Acquisition expected to be completed within one (1) month from the date of this announcement.

 

Paragraph 10.02(g) of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad

 

The highest percentage ratio pursuant to Paragraph 10.02(g) of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad applicable to the Acquisition is 0.38%.  

 

This announcement is dated 14 October 2019

 

 






Announcement Info

Company Name UNIMECH GROUP BERHAD
Stock Name UNIMECH
Date Announced 14 Oct 2019
Category General Announcement for PLC
Reference Number GA1-14102019-00084