The Board of Directors of Dancomech wishes to announce that Dancomech has, on 2 March 2020, entered into a share acquisition agreement ("SAA") with Tan Moon Chuan, Heah Choon Kwong and Mun Peng Foong to acquire 1,400,000 ordinary shares representing 70% equity interest in MTL Engineering Sdn Bhd, for a purchase consideration of RM23,800,000, subject to the terms and conditions in the SAA (“Proposed Acquisition”).

In conjunction with the Proposed Acquisition, Dancomech proposes to diversify the principal activities of the Dancomech Group (i.e. Dancomech and its subsidiaries) to include the business of producing metal stamping parts and components, and the design and manufacture of tools and dies (“Proposed Diversification”).

Please refer to the attachment for further details on the Proposed Acquisition and Proposed Diversification.

This announcement is dated 2 March 2020.