Winsun diversifies into mobile multimedia

Business & Markets 2013
Written by Chong Jin Hun of theedgemalaysia.com
Wednesday, 29 May 2013 13:55
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KUALA LUMPUR (May 29): WINSUN TECHNOLOGIES BHD [], an
industrial-automation specialist, is diversifying into the mobile
multimedia, gateway and applications business.
In a statement to the exchange today, loss-making Winsun said it plans
to acquire the entire stake in mobile-multimedia firm Planet Wireless
Holdings Ltd from Ample Holdings Ltd for RM14.5 million.
Winsun said it will finance the purchase with RM4.5 million cash while
the balance will be paid with 50 million new Winsun shares and an equal
number of warrants.
Upon completion of the deal, Ample will emerge as a substantial
shareholder in Winsun with a 14.5% stake. This is based on Winsun's
expanded issued base of 350 million shares.
Winsun also plans to place out up to 35% of its issue base to selected
investors.
According to the buyer, the diversification is expected to expand its
income base and its reduce dependence industrial-automation
operations.
"The board reasonably expects that, barring unforeseen circumstances,
the mobile-application business may in the future contribute 25% or
more of the net profits of the Winsun group," the firm said.
Winsun said it plans to get its shareholders' consent for the proposed diversification. The firm posted a net loss of 754,000 in
the first quarter ended March 31, 2013.

winsun 0141 - in wok

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