KUALA LUMPUR: Temasek Formation Sdn Bhd (TFSB), a special purpose company, is acquiring the entire interests including assets and liabilities of JOTECH HOLDINGS BHD [], AIC CORPORATION BHD [] and AutoV Corporation Bhd for a total of RM696 million.
TFSB, which is owned by Jotech executive chairman Datuk Goh Tian Chuan, will then merge the companies to create a larger entity.
Under the exercise, the company is offering 18 sen for each Jotech share, RM1.80 for each AIC share and RM2.38 per AutoV share.
Based on the above, the proposed swap ratios are 3 new TFSB shares for every 2 existing Jotech shares; 15 new TFSB shares for every 1 existing AIC share and 119 new TFSB shares for every 6 AutoV shares.
Goh said the execution of the merger would create a larger group in terms of market capitalisation, streamline the multi-tiered shareholding structure and unlock potential intrinsic values of the three companies.
'The full value of the business potential of Jotech, AIC and AutoV is expected to be accurately reflected at TFSB level.
'We see good value in these companies and are optimistic about their prospects,' he said at a briefing on Friday, July 29.
He said the merger would create a larger manufacturing group with diverse customer portfolios in a wide range of industries comprising medical and life sciences, automotive industry, the electrical and electronics industry (including the semiconductor industry).
In addition, the merged group under TFSB will not only have businesses in Malaysia, its reach will also span across countries and regions to countries such as China, Taiwan and Indonesia, he said.
Goh said that post the merger exercise, the group would have an improved balance sheet position, better financial strength and resources to realise its full potential and further improve the image and credibility of the respective business segments of the three companies.
'This stronger financial footing further augments the merged group's ability to access to a wide array of lucrative business opportunities as well as improve its ability to raise funds in the debt and equity capital markets.'
'The merger will be one of the largest amalgamations of manufacturing firms to be undertaken in Malaysia and may spearhead the long awaited consolidation in the manufacturing industry in Malaysia,' he said.
Jotech specialises in the stamping of metal parts for electronics products ranging from audio visual, computer network, and printer to automotive components for motorcycle and motor vehicle and oil palm PLANTATION [] business.
AIC is principally involved in the assembly and test of integrated circuit chips and precision tooling and automation.
AutoV is a Tier-1 supplier of automotive components to Proton, Perodua, Honda, Toyota and other local carmakers.
TFSB, which is owned by Jotech executive chairman Datuk Goh Tian Chuan, will then merge the companies to create a larger entity.
Under the exercise, the company is offering 18 sen for each Jotech share, RM1.80 for each AIC share and RM2.38 per AutoV share.
Based on the above, the proposed swap ratios are 3 new TFSB shares for every 2 existing Jotech shares; 15 new TFSB shares for every 1 existing AIC share and 119 new TFSB shares for every 6 AutoV shares.
Goh said the execution of the merger would create a larger group in terms of market capitalisation, streamline the multi-tiered shareholding structure and unlock potential intrinsic values of the three companies.
'The full value of the business potential of Jotech, AIC and AutoV is expected to be accurately reflected at TFSB level.
'We see good value in these companies and are optimistic about their prospects,' he said at a briefing on Friday, July 29.
He said the merger would create a larger manufacturing group with diverse customer portfolios in a wide range of industries comprising medical and life sciences, automotive industry, the electrical and electronics industry (including the semiconductor industry).
In addition, the merged group under TFSB will not only have businesses in Malaysia, its reach will also span across countries and regions to countries such as China, Taiwan and Indonesia, he said.
Goh said that post the merger exercise, the group would have an improved balance sheet position, better financial strength and resources to realise its full potential and further improve the image and credibility of the respective business segments of the three companies.
'This stronger financial footing further augments the merged group's ability to access to a wide array of lucrative business opportunities as well as improve its ability to raise funds in the debt and equity capital markets.'
'The merger will be one of the largest amalgamations of manufacturing firms to be undertaken in Malaysia and may spearhead the long awaited consolidation in the manufacturing industry in Malaysia,' he said.
Jotech specialises in the stamping of metal parts for electronics products ranging from audio visual, computer network, and printer to automotive components for motorcycle and motor vehicle and oil palm PLANTATION [] business.
AIC is principally involved in the assembly and test of integrated circuit chips and precision tooling and automation.
AutoV is a Tier-1 supplier of automotive components to Proton, Perodua, Honda, Toyota and other local carmakers.
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