KUALA LUMPUR: BOUSTEAD HEAVY INDUSTRIES CORP []oration Bhd (BHIC) subsidiary BHIC Defence Technologies Sdn Bhd (BHIC-DT) has proposed to acquire a 51% stake in defence electronic products maker Contraves Advanced Devices Sdn Bhd (CAD) from Rheinmetall Air Defence AG (RHAD) for an estimated RM26 million.
BHIC-DT on Monday, June 7 inked a share sale agreement with RHAD for the proposed acquisition of the stake comprising 2.55 million shares of RM1 each in CAD. RHAD will retain a 49% stake in CAD, and maintain operational management.
Established in 1983, CAD's principal activities include the manufacturing of industrial printed circuit board assemblies (PCBAs) and box-build assemblies, production of modules, electronic subassemblies, antenna and electronic time relays for the automotive industry, assembly of semi-rigid and flexible RF cables and service and maintenance of military and defence equipment.
A defence and security industry company with over 9,300 employees, RHAD has offices in North America and Canada, Europe (France, Switzerland, UK, Scandinavia), Middle East ' Abu Dhabi, Asia & Oceania ' Australia, Malaysia (Melaka), Singapore, Korea and India. It supplies army TECHNOLOGY [] with the primary focus on land systems, weapon and munitions, propellant, air defence, simulation and training.
BHIC said the purchase consideration was based 51% of CAD's net tangible assets as at June 30, 2010, plus 51% of a '2 premium (equivalent to RM7.94 million) which is based on 10% the '20 million sales committed by RHAD from 2011 to 2015.
BHIC said the parties intended to collaborate further to serve new markets as well as enable a technology transfer that would substantially benefit the Malaysian industry, specifically in the commercial and defence industry. It expects the proposed acquisition to be completed by Sept 30, 2010.
BHIC-DT on Monday, June 7 inked a share sale agreement with RHAD for the proposed acquisition of the stake comprising 2.55 million shares of RM1 each in CAD. RHAD will retain a 49% stake in CAD, and maintain operational management.
Established in 1983, CAD's principal activities include the manufacturing of industrial printed circuit board assemblies (PCBAs) and box-build assemblies, production of modules, electronic subassemblies, antenna and electronic time relays for the automotive industry, assembly of semi-rigid and flexible RF cables and service and maintenance of military and defence equipment.
A defence and security industry company with over 9,300 employees, RHAD has offices in North America and Canada, Europe (France, Switzerland, UK, Scandinavia), Middle East ' Abu Dhabi, Asia & Oceania ' Australia, Malaysia (Melaka), Singapore, Korea and India. It supplies army TECHNOLOGY [] with the primary focus on land systems, weapon and munitions, propellant, air defence, simulation and training.
BHIC said the purchase consideration was based 51% of CAD's net tangible assets as at June 30, 2010, plus 51% of a '2 premium (equivalent to RM7.94 million) which is based on 10% the '20 million sales committed by RHAD from 2011 to 2015.
BHIC said the parties intended to collaborate further to serve new markets as well as enable a technology transfer that would substantially benefit the Malaysian industry, specifically in the commercial and defence industry. It expects the proposed acquisition to be completed by Sept 30, 2010.
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